What Is The Difference Between Universal Life Whole Life And Term Life Insurance?

If you’re considering life insurance to protect your family, it’s essential to know the options available. Although different terms and opinions make it confusing, almost all life insurance policies fall into three categories: term life, whole life, and universal life. This article will cover the similarities and differences between whole life insurance and universal life insurance.

Whole life insurance provides permanent and stable protection with guaranteed cash value build-up over time. You can borrow against the cash value of your policy to pay for unexpected expenses. As long as premiums are paid, your family will receive the death benefit you set the policy for at a minimum. Additionally, dividends provide an opportunity for your policy to grow more over time. You don’t have to worry about the cost increasing or the benefits changing.

On the other hand, universal life insurance provides more control but requires oversight and doesn’t have a guaranteed death benefit. You can adjust your policy and premiums (within limits) as your life changes. Without adequately funding it, your policy can potentially end since the death benefit is not guaranteed. However, universal life insurance policies give you the most long-term protection for your dollar.

Which type of policy is best for you depends on your circumstances and desires. If you’re still unsure, it’s advisable to speak with a financial services professional about the different ways insurance products and features can be combined. They can walk you through your options and help you build a strategy that is personalized to your family’s needs.