Term Life
Insurance

Universal Life
Insurance

Whole Life
Insurance

Premium – fees paid by you for your coverage

Guaranteed premium payments
for designated length of term.

Flexible or guaranteed premium payments.

Guaranteed  premium payments.

Length of Coverage – the period of time your death benefit is in effect

Temporary as determined by the type of certificate, i.e., 10, 15, 20 years.

Permanent or temporary.

Guaranteed permanent until you die.

Cash Value – present value, based on premiums paid

None.

Yes, but cash value is dependent on the interest rates, amount of premium paid, and certificate charges.

Yes. Cash value is guaranteed. Dividends may be awarded but are not guaranteed.

Pros

Lowest premium payments for the highest amount of insurance for your money.

Lowest priced permanent death benefit. Opportunity to build cash value.

Permanent death benefit and guaranteed cash value.

Cons

Temporary death benefit. Coverage expires at the end of the certificate term.

Cash value not guaranteed. Higher premium compared to term.

Higher premium compared to term.

Comments

Suitable for temporary needs like college planning, mortgage insurance or as your first, least expensive coverage.

Very flexible. Cash value can be used for different purposes.

Very safe, conservative addition to a retirement portfolio.