Difference Between Similar Terms and Objects

Difference Between Universal Life and Whole Life

Universal Life vs Whole Life

Insurance companies are great businesses to implement. You can earn lots of money with it while helping a lot of people. The most common type of insurance is health insurance. This is a good type of insurance because diseases are inevitable in this planet. We can also reduce the costs of our payments when hospitalized. There are also car insurances and death insurances. There is also what you call life insurance.

There are two types of life insurance. These are the universal life and whole life. Although you are rest assured of having a financial gain at the occurrence of your death, both still have major differences in matters of payment schedule for the insurance itself whether universal life or whole life.
So start off, we have universal life insurance. Universal life insurance is said to be about flexibility. Flexibility in terms of payment for the fact that the schedule of payments has its flexibility. How? In payment of life insurance, there is a tax deferred cash value. This is then invested. Depending on the performance, insurance holders can skip payments through this investment or they can use this investment for their savings.
Whole life insurance, on the other hand, is said to be the traditional way of payment. You are guaranteed a benefit upon dying as long as you paid your dues on time. Everything about this insurance contract is laid out before the signing and cannot be changed in the future.

Whole life insurance thus cannot be changed because it’s locked in. It will remain this way until the insurance is completely paid or not. While with universal life, there is no bond or locking. It is said to fluctuate all throughout the contract. Everything about the insurance is also not disclosed or even calculated. Universal life is quite tricky to invest with your money because the investment cannot assure you of success. When considering these insurances, you must consider your health and age because the costs will be based here. Also, you must review the policies well before purchasing these types of insurances.


1.Universal life insurance has a flexible payment schedule while whole life insurance is about a traditional way of payment.
2.The policy of universal life is fluctuating due to the investment scheme of the money you paid while whole life has a consistent policy and will never change throughout.

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