Frequently Asked Questions

How is Whole Life different from Universal Life?


The major differences between universal life (UL) and whole life (WL) are as follows:

a) UL has flexible premium payments and death benefit. WL has a required premium (guaranteed) as well as guaranteed cash value and guaranteed death benefit.

b) UL can be funded by just paying the monthly costs of the policy or you can fund it with large premium payments. Unfortunately many policyholders with UL's have funded it at a low rate and because, over time, these policies develop very low cash values, the insurance costs become much higher as the insured ages and the policies become unaffordable. WL is much simpler, you pay a guaranteed premium and you receive guaranteed cash values and a guaranteed death benefit.

c) Both policies provide nonguaranteed values such as dividends for WL and an interest rate for UL.