Whole Life & Universal Life
Whole Life is a Permanent Insurance product that provides death benefit protection and cash value accumulation. This coverage typically remains in force for your lifetime as long as premiums are paid. You have access to this cash value and can generally either take it as cash or use it to buy some continuing insurance protection. The amount of the cash value depends on the kind of policy you have, premiums you are paying into it, and how long you have owned it. You may also use your policy cash value as collateral for a loan. Policy surrenders and loans incur charges and/or interest. They can also affect policy values and the death benefit.
Whole life premiums, cash values, and death benefits are set at policy issue and are guaranteed as long as premiums are paid. Premiums are level and predictable.
Universal Life It is also called Flexible Premium Adjustable Life Insurance. This coverage is similar to whole life insurance, but more flexible. It allows the policy owner to vary the amount and timing of premium payments (subject to satisfying policy premium minimums to maintain the policy), and increase or decrease the death benefit (subject to underwriting for an increase). Cash values accumulate based on premium payments and current interest rates that the carrier is offering.