whole life vs universal life insurance

what is a universal life insurance


Universal life insurance refers to a type or permanent life insurance. Unlike term life insurance that only covers a set period like 20 years or so, universal life insurance will continue to be in force until you stop paying premiums.


Universal life is flexible and allows you to have a permanent life insurance plan as well as build cash value. The premiums are flexible. You can change the payment amount or raise them, but only within certain limits. It is a good option for those with variable incomes as it allows them to take out cash and borrow money.

hartford universal life insurance


The cash value component earns interest using a money market interest rate or, in some cases, a rate linked to a market index. Your cash value will rise, which will help you pay your premium. If your financial situation changes, it can help to lower your monthly payments.

hartford universal life insurance
how does universal life work

how does universal life work


A UL policy gives the insured person many of the same permanent protection and benefits as whole life coverage, along with the added benefit of a flexible premium to help accommodate variable earnings. In addition, depending on the life insurance company and policy, you may also have the option to invest your cash value in various market-based investment options, giving you the potential for more growth. On the other hand, universal life offers fewer (or lower) cash value guarantees.

is universal life insurance permanent


Universal life insurance may be right for you if you are looking for life insurance with long-term coverage. Universal life insurance may offer a guaranteed death benefit. It allows you to tap into policy cash value and gives you the ability to adjust your premium payments or death benefits.

is universal life insurance whole or term

is universal life insurance whole or term


Variable universal life insurance allows policyholders to choose how they want to invest their cash value. You have the option to invest in stocks, bonds, or mutual funds.

whole universal life insurance


Guaranteed universal insurance (GUL) also known no-lapse guaranteed life insurance. This policy offers a guaranteed benefit death benefit and premiums that will remain the same throughout its life. GUL policies often fall under the umbrella of permanent life insurance. They usually have an end date, though they are sometimes included. A policyholder typically selects an advanced age, 95, or 102. - and the policy will be kept active until that time. GUL policies are not like other permanent life policies. They may have very little or no cash value.

whole universal life insurance