Who Is It For?

Consider a whole life insurance policy if the following is important to you:

1. Premiums remain unchanged for the life of the policy
2. Cash value accumulation that’s available to you during life
3. Coverage that remains active as long as premiums are paid

Major Benefit

A benefit of a whole life policy is that its premium remains unchanged for the duration of the policy. And similar to universal life coverage, whole life accumulates cash for the policyholder to borrow.

Universal Life Insurance

Universal Life is slightly different from whole life. Universal policies offer flexible premiums. You have the option of adjusting how much you pay each year. If your policy has accumulated cash, then you can put it towards the premium. You don’t have to but it’s an option.

The potential growth of a universal life policy changes over time. The insurer sets a minimum interest rate. But it’s possible that the insurer’s portfolio will earn more than the minimum interest rate. If that happens, the insurer can credit the additional interest to your policy.

Universal life insurance is good if you want:

– The ability to adjust premiums and the amount of coverage
– The ability to borrow from the policy and use the cash during your lifetime
– Permanent life insurance that doesn’t expire when you reach a certain age