We know that insurance lingo can be confusing! That’s why we’re here to make things simple. Whole Life and Universal Life are both types of permanent insurance, but they work a bit differently. Let’s break it down so you can choose the one that fits your needs:
Whole life: the classic choice
Think of Whole Life as the reliable old friend of life insurance. It’s designed for:
- Lifetime coverage: You’re protected for your entire life, as long as you pay your premiums.
- Predictable premiums: Your monthly payments stay the same, no matter what.
- Built-in savings: Your policy builds cash value over time, which can be a handy bonus.
- Two flavors: You can choose from “participating” (which might pay you dividends) or “non-participating” policies.
Universal life: flexibility is key
Universal Life is a bit more customizable than Whole Life. Here’s what you get:
- Flexible premiums: You can change how much you pay (within certain limits).
- Adjustable coverage: You can even adjust how much your policy pays out.
- Investment options: Your cash value can grow depending on the investment choices you make.
Need more details on Universal Life? Check out our easyLife University section.