Whole Life
Whole Life insurance is a guaranteed, permanent policy. The premium is at a guaranteed level so you always will know the worth of the policy and how long you will have to pay. Death benefits are also guaranteed never to decrease. Another characteristic of Whole Life has a cash value that derives from the savings component that you may access while alive with exceptions. Cash value into the policy is income tax exempt but will reduce the death benefit.
Universal Life
Universal Life insurance is a type of permanent policy. This type of insurance is more flexible than Whole Life because there are options to lower or raise the premium when needed. It offers protections for a lifetime as long as enough premiums are paid. You may choose the death benefit amount to your beneficiaries and adjust it over time. You can access the cash amount in your policy for things like money withdrawal or taking out a loan against it .
Term Life
Term life is chosen when you want to get coverage for a specific amount of time at a more affordable premium. It is possible to extend a Term Life policy if it is stipulated in the original contract. The terms commonly used are 10, 20, and 30 year terms.
Life Insurance