Which is Better Whole Life or Universal Life Insurance?

There are several ways to offer different life insurance policies, almost all fall within three basic categories; term life, whole life and universal life insurance.

But what do each of these three life insurance policies do:

• Term life: covers for a set period of time
• Whole life: offers guaranteed lifetime protection
• Universal life: offers a flexible long-term option

Whole life insurance is permanent, while universal life insurance offers long-term protection. With whole life, premiums are fixed and guaranteed never to rise. Pay the premiums, beneficiaries receive payout.

With universal there are no fixed premiums and you have the flexibility on when to make payments. However, if the policy is not well funded, it could end. As you get older, the cost of the policy could increase.

Universal offers more control, but it requires continues monitoring and doesn’t guarantee death benefits. The policy is adjustable as your life changes.

Both whole life and universal life insurance can build a cash value. Just remember that the cash value of a life insurance policy is an important way to save for the future. You can even borrow against the cash value of your policy to pay for unexpected expenses.

The main difference between the two insurances is that whole offers guaranteed cash value over time and universal has the potential to accumulate a cash value with time; this is dependent on factors like funding the policy and such.

Want to know more about universal life insurance? Call Advanced Insurance Concepts today and Jim Rooney will work with you to find the answer. Advanced Insurance Concepts works with a variety of insurance companies and all Medicare Advantage providers in Missouri and Kansas. He is licensed to sell Health, Life and Accident Insurance, so call Jim Rooney for all your insurance needs.