Life Insurance Comparison Chart
- Life Insurance Comparison
|
Term Life |
Universal Life |
Whole Life |
|
| Used for |
Short-term specific needs or when funds are limited |
Long-term needs |
Long-term needs |
| Advantages |
Covers your insurance needs at an economical rate |
Flexible policy can evolve with your changing financial situation |
Level premiums and level death benefit with lifetime coverage |
| Death benefit to a beneficiary |
Yes, provides income tax-free death benefit |
Yes, provides income tax-free death benefit |
Yes, provides income tax-free death benefit |
| Lifetime coverage |
No, insures your life for a specific period of time |
Yes, when required premiums are paid, the policy stays in force |
Yes, when required premiums are paid, the policy stays in force |
| Level premiums | Yes, for the chosen period of coverage | Yes | Yes, premiums are level for the life of the policy |
|
Protects future insurability |
Option of converting to a permanent plan |
Yes |
Yes, lifetime coverage as long as premiums are paid |
| Cash value tied to current interest |
No, term insurance does not accumulate cash values |
Yes, there is also a guaranteed minimum interest rate |
No, cash values accumulate at a guaranteed rate |
