Whole Life
Whole life insurance is a type of life insurance policy that provides coverage for the entire lifetime of the policyholder, as long as the premiums are paid. This type of insurance has a cash value component, which means that a portion of the premium payments goes towards building up a savings or investment account within the policy. The cash value that grows over time can be borrowed against and used to pay the premiums. The death benefit of a whole life insurance policy is typically higher than that of a term life insurance policy. Whole life insurance is a great option for those who want to lock in their premiums permanently
Quick overview of insurances
While withdrawals of more than you’ve contributed to the cash value are taxed, policy loans are not.
Your death benefit is established when you sign up for your policy and stays the same while the policy remains active.
Part of each premium payment accumulates as cash value, which you can withdraw or borrow against during your lifetime.
Term
Is simple and popular. It provides life coverage and pays a sum assured to your dependents upon your passing, as long as premiums are paid on time.
Provides a larger death benefit without accumulating cash value.
Initially, a less expensive form of life insurance.
Universal
UL insurance provides flexibility with premiums and cash value. Payments can be adjusted or skipped without risking policy lapse.
Your policy can be adjusted to increase or decrease the death benefit, potentially requiring a medical exam for increases. Lowering the death benefit can help reduce premiums.
UL insurance accumulates cash value with interest based on the market or a minimum rate. Policyholders can access the cash value through withdrawals or loans.
Whole Life
As with all permanent insurance, whole life insurance provides coverage until the insured’s death.
It can be renewable or convertible.
UL policyholders can borrow against the cash value without tax implications or credit checks, but unpaid loans reduce the death benefit.
Guaranteed death
Benefit
Cash Value Growth
