What's the difference between whole life and universal life

Whole life is permanent, while Universal Life offers long-term protection. With whole life, your premiums are fixed and guaranteed never to rise¹. As long as you continue to pay them, you can count on the life insurance benefits being paid to your beneficiaries.

What is the disadvantage of universal life insurance?

Disadvantages of universal life\n\n Requires you to monitor your policy. If you don't pay attention to the value of your account, it may become underfunded, which could leave you with a series of large payments to maintain the coverage you signed up for. It may also lapse, leaving you with no life insurance.

What is the difference between Index universal life and whole life?

The main difference between whole life insurance and indexed universal life (IUL) insurance is how the cash value operates. Whole life insurance cash value grows based on a fixed interest rate. In contrast, insurance companies tie IUL cash value to a stock market index's performance.

Is universal life insurance considered whole life?

Whole life and universal life insurance are both considered permanent policies. That means they're designed to last your entire life and generally won't expire after a certain period of time as long as required premiums are paid.

What happens when a universal life insurance policy matures?

When a policy reaches its maturity date, you generally receive payment and coverage ends. Depending on the policy, the payment might be the death benefit or a specified dollar amount, but it's usually equal to the policy's cash value.