The two principal characteristics of term insurance are: the insured must die for any benefits to be paid and, by definition, the contract expires at the end of the term. Stated more specifically, a term life insurance policy promises to pay a death benefit to a beneficiary only if the insured dies during a specified term.
Universal life insurance is considered a permanent policy and designed to last your entire life.  It will not expire after a certain period of time as long as required premiums are paid. It has the potential to accumulate cash value over time that you may be able to borrow against tax-free, for any reason. Because of this feature, premiums may be higher than term insurance.

Whole life insurance policies have a fixed premium, meaning you pay the same amount each and every year for your coverage. and a fixed death benefit for the life of the policy. 

  • Any cash value growth is tax-deferred (as it is with universal life)

  • Whole life may allow you to make withdrawals and loans against the policy

  • Whole life offers the ease of budgeting for a regular and consistent premium payment every month