You choose how the money in your account is invested, and you can change the mix over time. Most plans offer three kinds of options: guaranteed interest, which earns a set rate for a set term; index-linked options, which follow a fund or market index and can rise or fall; and ready-made portfolios of index-linked options. Only guaranteed interest options have guaranteed returns. Management fees apply, and the options vary by insurer and policy.
How does the investment component of universal life insurance work?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about universal life insurance
Permanent life insurance with flexible premiums and an investment account inside the policy.
More questions about universal life insurance
- What is universal life insurance?
- Can I withdraw money from my universal life insurance policy?
- Can universal life insurance be converted to whole life insurance?
- What happens when a universal life insurance policy matures?
- Are indexed universal life insurance (IUL) or variable universal life insurance (VUL) policies available in Canada?
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