Universal Life vs. Whole Life Question

Whole life has a guaranteed cash value and a guaranteed death benefit. Universal life does not have a guaranteed cash value but does have a guaranteed death benefit. This can vary among carriers. Term insurance has no cash value but does have a guaranteed death benefit.

Thanks. I also just found your chart about all the differences.

Whole life insurance and universal life insurance are both permanent types of life insurance. A whole life policy is a permanent policy where the premiums are set at a fixed amount and never change until you have paid funded the policy in full. Also, the amount of the death benefit will not increase or decrease over the life of the policy. With a whole life policy, you can't chose where the money in your cash value account is invested, and the insurance company may not disclose the rate of return to you either. A universal life insurance policy on the other hand has flexible premiums, an adjustable death benefit, and the cash value of a universal life insurance policy is interest sensitive, meaning if interest rates increase so will the value of your universal life insurance policy. The premium levels and the death benefits can be adjusted by you if you choose to do so. With a universal life policy you can also put any excess money into the policy which will increase the cash value of the policy immediately. Therefore, if you are more comfortable with a fixed premium and death benefits, then a whole life policy may be your best choice. However, if you want more flexibility and have the time to monitor your policy, then a universal life policy may be your best option.

Denise at AccuQuote
Disclaimer: I work for AccuQuote and this is my personal opinion.