Permanent Life Policy Options; Universal, Whole and Guaranteed

Term life insurance is the most common and least expensive type of life insurance, however, a permanent life policy can offer you coverage FOREVER, along with investment opportunities.


There are 3 common types of permanent life insurance and let me help you understand your options.


First, know that all 3 offer life long coverage or in other words, till you die.  The main differences is the cash-value component they offer.  


Let me explain.

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Universal Life

  • Cash- value portion is tied to the market indexes- when interest rates are higher, you make more money.  With our current record low interest rates, you won’t see much growth.  You play the odds with this type.
  • When interest rates are high, you pay lower premium and the difference is made up with the cash-value investing the insurance companies does.
  • If interest rates are low, your premiums may go up to cover the difference.
  • Premiums can fluctuate.
  • Typically less expensive than whole life.
  • Count on your rates fluctuating.

Whole Life

  • You pay premiums for a limited time (certain age or years) but the policy is for life.
  • Cash-value component pays out dividends (not guaranteed though) that are re-invested back into the cash-value.  This provides protection from “lapsing” the policy.
  • You can withdrawl from the cash-value “tax free.” Not always the case with other products.
  • If you stop paying the premiums, the case-value will be used to cover it.  Less chance to lapse the policy.

Guaranteed Universal Life

  • Similar to universal life but not the risk.
  •  Premiums always stay the same.
  • Doesn’t offer a case-value option so no money can be withdrawn early, and also if you don’t make the premium payment- your policy lapses. With the other types, the cash-value is used to cover the premiums so there is less risk for lapses.
  • The death benefit never decreases- not the case for the others.
  • This is similar to a TERM Life policy but it lasts till you die.  No term limit.

Term Life is great but I need coverage for life, this product is perfect- Get started today!