Whole Life Insurance is an insurance policy guaranteed to remain in force during the lifetime of the insured as long as required premiums are paid. Premiums are fixed based on age when you obtain the insurance, and do not usually increase with age.

Term Life Insurance is an insurance policy that provides coverage at a fixed rate of payment for the relevant term (set period of time). After this period, coverage at previous premium is not guaranteed and the insured must forgo or obtain further coverage. If the insured dies during the relevant term, the benefit will be paid to the beneficiary. This is the least expensive way to obtain a substantial death benefit.

Universal Life Insurance is a permanent type of life insurance that the excess premium above the cost of insurance is credited to the cash value of the policy, which is then credited with interest. The policy is debited each month by a cost of insurance (COI) charge even if no premium payment is made that month. Interest is determined by the insurer but has a minimum rate. This offers a guaranteed premium during insured’s lifetime that has a lower premium cost.