Term Life vs Whole Life vs Universal Life Policies:
Which One is Right for Me?
Whereas Term Life Insurance guarantees a death benefit payout for the term (amount of years) of the policy, Permanent Life insurance covers you for the entire duration of your life, providing the premiums on the policy have been paid. Additionally, Permanent Life policies include a cash savings or cash accumulation vehicle that can be withdrawn, borrowed against, and even used to pay premiums when sufficient funds have been accumulated. Those are the obvious differences between Term Life and Permanent Life policies. Within the Permanent Life policy options, however, there are some key differences that might make choosing one over the other more complicated. Here’s a quick list of the pros and cons of each.
Indexed Universal Life
Tax-Free Death Benefit
Fixed-Rate Cash Growth
Potential Big Gains/Losses
Potential Solid Gains/Losses
Borrow Against Cash Value
Coverage over lifetime
Here’s A Quick List of The Pros and Cons of Each:
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