Can universal life insurance be considered an investment product ?

An insurance product that is a little controversial today is universal life insurance, because it is often presented as a product of investment by some advisers and financial planners.
Far from meeting the needs of their lessee, the capitalization of premiums according to the investor profile of the lessee gives it a stamp of financial investment, a misleading aspect if the contours of the product are poorly explained and misused.

The flagship argument of the financial advisors is to present it under the suggestion that the capitalized premiums and additional premiums added will be used to release his insurance policy more quickly if he wishes while enhancing the death benefit at maturity and acquiring an appreciable cash value.
The unspoken is that the financial advisor will get paid for each investment and on each income earned from the highest commission return investment returns in the industry. In fact, we realize that this product is more intended for affluent customers, having contributed as much as possible in products with tax advantages legally allowed like the TFSAs and RRSPs and who wish to invest additional money in the same way. tax shelter for their estate.
The second unspoken of these products is that there are hidden costs if one wishes to withdraw the fruit of his investment, withdrawal fees are quite high on the sums withdrawn especially during the first ten years because they are considered as being taxable.
That is why it is important for policyholders to be aware of all aspects of this product, which must be used primarily to meet protection needs like other insurance products such as permanent insurance and not as an investment product.
In conclusion, universal life insurance has the main mission is to meet the financial needs of the client in terms of wealth protection in the event of a death while improving the death benefit and this in the shelter of the tax within its regulatory limits in accordance with the laws of the province in force.