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.
Which life insurance is better term or whole?
If you only need life insurance for a relatively short period of time (such as only when you have minor children to raise), term may be better as the premiums are more affordable. If you need permanent coverage that lasts your entire life, whole life is likely preferred.
What are the disadvantages of universal life insurance?
The money you pay-in every month to purchase your life insurance coverage is called your premium. In a whole life policy, this premium is a fixed payment of a set dollar amount. In a universal life insurance policy, you can raise or lower those payments as you see fit, within the limits of the policy.