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Universal Life Insurance

Universal life insurance is one type of permanent life insurance.  With a permanent policy, the insurance is designed to last as long as you pay the premiums.  Whole life insurance guarantees this lifetime protection.  Traditional Universal life insurance does not have these guarantees but there are now Universal life policies with lapse protection that guarantees the insurance policy will never lapse provided you pay your premiums when due.

Permanent insurance policies are designed and priced for you to keep over a long period of time.  If you don’t intend to keep the policy for the rest of your life, this may be the wrong type of insurance for you. If so, it may be better to consider term life insurance or return of premium insurance.

The two main types of permanent life insurance are whole life and universal life.  These have a feature known as cash value or cash surrender value. Term insurance policies do not have cash values.

Universal life (or whole life) covers an event that’s certain to happen; one’s death, while term covers you for the possibility of you dying during the term period.

A term life policy is sometimes renewable (you can keep it but at a price that reflects your older age). At some point, as you get older, term goes up in price and may become too expensive for you to keep.

The Difference between Whole Life Insurance and Universal Life Insurance

Here’s the difference in a nutshell:

Whole life guarantees the death benefit for life, guarantees the cash value and guarantees the premium – period.

Universal life insurance assumes an interest rate and the cost of insurance and comes up with a projected premium. If the insurance companies’ projections on their universal life policy do not come through, then you may have to come up with higher premiums later, have lower than expected cash values or even lose the policy – but…..

A recent development on universal life

A recent development in the insurance marketplace is that you can now get universal life insurance and guarantee that the policy will last for a lifetime. It may lose its cash value but the insurance amount can be guaranteed for life. To learn more about these guaranteed death benefit universal life insurance policies click here.

The experts at InstantQuoteLifeInsurance.com can discuss this with you and simplify it for you. There are differences in cost and benefits among companies. We’ll go over those questions with you and get you straight answers.

Call us toll free at 866-691-0100, email us or go straight to your instant life insurance quote form.



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