Also known as permanent coverage, whole life insurance provides guaranteed insurance protection for the entire life of the insured. It carries a “cash value” component that grows tax deferred at a contractually guaranteed rate until the contract is surrendered. The premiums are usually level and the death benefit is guaranteed for the insured’s lifetime.

Also known as flexible premium or adjustable life. It is similar to whole life insurance in the fact that it is also a permanent policy which provides cash value benefits based on current interest rates. What makes Universal Life different from Whole Life is that cash values and the amount of protection can each be adjusted up or down during the contract term based on the insured’s needs.

Term life insurance provides coverage for a period of time, often at a fixed rate, and it pays the face amount of the policy. This option is typically the least expensive and most affordable. However, there are no benefits beyond the death benefit. Term policies do not build cash values and the maximum term period is usually 30 years.