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Whole Life Insurance
Whole Life Insurance: Whole Life Insurance is a permanent insurance which provides permanent insurance protection for your whole life with a guaranteed death benefit and guaranteed premiums. Whole Life Insurance is designed to cover permanent needs. Although it is more expensive than term insurance, whole life has many attractive features that term plans do not have. For instance, the death benefit is guaranteed for life. So is the premium. Premiums are fixed and can be paid for life or can be paid for a specific period of time, such as for 20 years or until age 65. Most Whole Life Insurance policies have cash surrender values. The Cash surrender value is the amount of money you would receive if you decide to terminate and cash in your policy.
Universal Life Insurance
Universal Life Insurance: Universal life insurance is a form of permanent life insurance. It provides death benefit as well as savings. Universal Life plans consist of a life insurance component and a tax-deferred investment savings account. Universal Life is the most flexible and therefore most confusing type of life insurance coverage. The cost of your insurance can be level or increasing, additional premium payments can be made and can grow tax-deferred in the investment account. There are literally hundreds of investment funds to choose from. These types of policies are popular for estate planning, charitable gifting and for affluent clients in need of additional tax shelters.
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