Whats the difference between term insurance, whole life insurance, and universal life insurance?
Term Insurance is typically the lease expensive of all policies and allows you to obtain the maximum benefit for the lowest cost. In the majority of scenarios, term insurance is the best way to go. Whole Life Insurance is also called “permanent” insurance. It can be kept in force for as long as you live provided that the policy performs according to assumptions and projections and you have paid sufficient premiums into the policy. The face amount and the premium are fixed at the time you buy your policy and stay the same as you age, BUT be careful! Certain assumptions are built into this type of policy such as interest rate assumptions, projected dividends, etc. If the assumptions are correct, the policy may build cash values over the course of time. If these projections are wrong, you will end up with an unpleasant surprise such as an additional premium notice or a lapse notice! Universal Life Insurance is also called “permanent” insurance. With this type of policy, there is the poten
