Life vs. Whole Life
Whole Life is the more comprehensive policy simply because
it offers more guarantees . The premium is guaranteed to stay
level. The death benefit is always guaranteed and can increase.
The cash value of the policy is always guaranteed . In addition
dividends will be paid. Whole Life is suitable if you are
looking for guaranteed growth of your premium dollars. It
is often used as the foundation of a retirement plan.
Universal Life is the more affordable permanent life insurance
policy with more flexibility and fewer guarantees .
The premium can be flexible or guaranteed. The cash value
is never guaranteed since it depends on current and future
interest rates and current and future policy charges.
A change in interest rates and/or policy charges has a direct
impact on the cash value.
The death benefit can be guaranteed.
Universal Life is a great policy if you are willing to give
up some guarantees in order to get a lower premium. In addition
Universal Life insurance has a better potential of higher
cash values, which grow tax-deferred.