Whole life insurance is a type of policy that lasts your entire life. In fact, depending on the carrier, it can provide coverage for 100 to 121 years on average. Throughout the duration of the policy, it accrues a cash value, which can be borrowed against or. The policyholder can access the cash value while alive, making whole life insurance an appealing option for many individuals. Another benefit to whole life insurance policies is that their premiums remain the same/level as long as payments are made on time. Whole life insurance is typically more expensive than other policies, but for many, the benefits outweigh the costs.

Term life insurance is a type of policy that expires after a certain period. Most carriers sell term life insurance in increments of 10, 20, and 30 years, after which the policy expires. However, the policyholder can choose to repurchase a new term life policy after their existing one expires. There is no cash value associated with term life insurance, and because the policy can expire, premiums throughout the policyholder’s life. With this type of life insurance, the death benefit is only paid if the policyholder passes away while the policy is in its active term. Because term life insurance only provides the bare minimum, it’s the most affordable coverage option.

Guaranteed universal life insurance (GUL) is a type of policy that works similarly to whole life insurance. It provides coverage for the policyholder’s entire life and offers a guaranteed level premium as long as payments are made on time. While GUL has a cash value, it doesn’t grow at the same rate as a whole life policy’s cash value, making GUL more affordable. In fact, GUL policies are designed to be an affordable option for older clients who wants a larger face amount while obtaining a lifelong death benefit.