What would you like to do?

What is the difference between term insurance life insurance and universal life insurance?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Term Life Insurance will protect you for a limited period of time. It is considered pure protection life insurance. You have options for 1 year renewable term, 10 years, 15, 20 and 30 years term. Some companies even offer a 40 years term, or term to age 65. Your life is covered for the length of the contract. At the end of the selected term, you have the option to terminate coverage, or convert the term policy to a permanent life insurance (whole life or universal life insurance).
Some term policies will return all premiums paid at the end of the term. You have to have the Return of Premium option on the policy in order to get all your money back.
Universal Life insurance policy is designed to stay in force for the rest of your life, and it can accumulate cash value. Universal life policies have two components: protection and investment. Premiums are higher for Universal Life, versus Term Life, due to the investment portion which accumulates cash value.
Depending where you are in your life and financial situation, term may be your best option if you want to protect your family or dependents for a determined amount of time (until children finish college); or if you want to protect your dependents for as long as you live (up to age 120 is available) then Universal Life or Whole life are your best bet.
2 people found this useful
Thanks for the feedback!

What is the different between increasing and level in universal life insurance?

  Answer     I assume that you are asking about Variable and Non variable universal Life.Variable has more financial risks involved as far as intrest rates and r

How do term life insurance and whole life insurance differ?

Term is strictly protection. Whole life is protection plus cash value. Cash value is similar a to a savings account within the policy. Part of the periodic premium goes to pay

What is the difference between a whole life insurance policy and a Term life insurance policy?

Whole life insurance provides lifetime protection and builds cash value within the policy. As long as you pay your premiums on time, your life insurance remains in effect. 

What is the difference between group term life insurance and individual term life insurance?

Group term life insurance is a type of life insurance provided for employees by their employer.   An employer buys a master policy and issues certificates to employees deno

What is the difference between variable life insurance and universal life?

  Nothing is the difference. Universal Life can be fixed or variable. Variable simply means that the cash value is invested in stocks or mutual funds to create a fast (som

What is the difference between life insurance and non life insurance?

Life insurance pays a death benefit when the insured party dies. So, it is insurance on someone's life. Non Life Insurance (such as home, auto, general liability) insurance

What is the difference between whole life insurance and term life insurance?

Whole life 1) Whole Life is a form of permanent insurance. Permanent insurance comes in a variety of forms, e.g., universal, variable universal, equity-indexed, etc. All have

What is the difference between whole life and term life insurance?

Term insurance can be thought of as "pure protection" in the sense  that it provides only a death benefit, and then, only if the  insured dies for a reason that is not exclu

How does Spectra Life Insurance differ from Universal Life Insurance?

Universal Life Insurance is the one type of life insurance. This is a flexible version of life insurance where you get the savings element of whole life. Universal Life Insura

What is the difference between Whole Life Insurance and Universal Life Insurance?

Whole life: 1) Level premiums until the policy expires when you are at age 100 or when you die, which ever is earlier. If you live to age 100, the company will pay face amou

Difference between life insurance and non life insurance?

Life insurance pays a death benefit when the insured party dies and the money can be given to his or her friends, family or next of kin. Non Life Insurance covers objects fo

What is the difference between term life and whole life insurance?

Term life is temporary coverage for a period of time that you choose based on your needs (mortgage paid off, kids finish college, retirement, etc) for 10, 15, 20, or 30 years.