Difference Between Universal And Whole Life Insurance at Life

Difference Between Universal And Whole Life Insurance. Less growth opportunity means the rates for a universal life insurance policy are less expensive than whole life insurance. To provide financial security and benefits at death.

Universal life insurance premiums can be flexible, but the cash value is not predetermined when the policy is. The significance of adjustable or universal life insurance is that the policy may be structured so that it functions more like whole life or more like term insurance. It is also known as an adjustable life.

Term or Permanent Life Insurance Allstate

While it's true that universal and whole life insurance are meant to continue until the day the insured passes away, there are important differences between the two types of policies. Truly though, whole life is an antiquated and confusing type of permanent life insurance, and there is little reason to choose it over universal life. A whole life policy is typically a policy which runs as long as the policyholder is alive. For families who want permanent life insurance for financial protection long term and don’t particularly need cash value accumulation, universal life insurance should be considered.