 |
Term | Universal Life | Whole Life |
| Premium (price) Guarantees: | Option of 1, 5, 10, 15, 20, or 30-year term, after which you pay more. | In a few instances, lifetime guaranteed, but typically 3, 10, 15, 20, or 40 years guaranteed, after which the cost may or may not go up. | Lifetime guarantee. |
| Waiver of Premium: | May be available. | May be available. | May be available. |
| Increasing Death Benefit: | Not available. | Yes, if desired -- right from the start. | Most plans won't increase until after many years. There are some that will increase right from the start. |
| Projected (non-guaranteed) Cash Value: | Not available. | Flexible; from next to nothing, to a considerable amount. | A considerable amount. |
| Guaranteed Cash Value | Not available. | For a limited amount of years, from short to very long term -- varies from plan to plan. | Strong lifetime guarantee of at least a modest to a moderate amount. |
| Other Features: | Before a certain age or certain period has lapsed, [term is usually convertible to whole life or universal life.*] | Premiums and amount of coverage can be changed upward or downward from time to time if you desire. | The cash value or "dividends" and other options can be used to create premium and policy flexibility. |
| How will the Premiums affect my cash flow?: | Lower to lowest initial cash outlay. | Flexible -- lower, medium, or higher initial cash outlay. | Higher initial cash outlay. |
| Other Living Benefits (for catastrophic illnesses or terminal illnesses) | Terminal illness benefit available on many plans. Catastrophic illness available on only a few plans. | Terminal illness benefit available on many plans. Catastrophic illness available on only a few plans. | Terminal illness benefit available on many plans. Catastrophic illness available on only a few plans. |