Difference between Term, Universal and Whole Life Insurance [Infographic]

3. Whole Life Insurance

Whole life is another type of permanent life insurance policy. Unlike term life insurance, whole life insurance is designed to provide a death benefit as well as living benefits.

When it comes to debating term vs whole life: it comes down to policy benefits why whole life is better than term. The big difference is that whole life benefits can include eligibility to earn dividends, cash value access from partial surrenders and loans, and guaranteed cash value accumulation – as long as you pay your life insurance premiums.

Your whole life insurance policy will provide you coverage for your entire life. When you’ve been approved for life insurance coverage, you whole life policy can’t be cancelled by the company as long as you pay your premiums.

What if you were to become ill? Your whole life policy will remain in force even if your health fails.

What about the cash value growth? What can you use it for? Your cash value can be used toward any purpose of future need via a whole life policy loan.

Examples of policy loans;

  • College Tuition
  • Car Purchase
  • Home Down Payment
  • Retirement Income

Your cash value can increase from the dividends when declared by the cash value life insurance company.

>>Related Post: Term vs Whole Life Insurance

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