Life Insurance Leads Kansas City, Missouri MO

Reader’s Question:

I am from Kansas City, Missouri MO and I have been checking permanent life insurance policies online. I would like to know the difference between whole life insurance policy and universal life insurance.

Kathy

Kansas City, MO

Whole life and universal life both offer guaranteed death benefits. Usually the premiums for both policies are paid monthly.

Both coverages are also different forms of permanent life insurance you can choose from.

Whole life insurance is the mainlstream of the permanent life product line. A portion of your monthly premium for whole life insurance pays a defined amount toward the accumulation of tax-free cash value. Your carrier in Kansas City, Missouri MO generates this whole life policy’s cash value by investing in funds. Often whole life insurance policies pay dividends based upon the provider’s annual income and expenses. These dividends are not guaranteed though, but Whole life policies allow for loans against the cash value. The premiums are constant throughout the life of whole life insurance policies, in most cases I know.

On the other hand, universal life combines elements of term insurance with money market investments. There is no guarantee on the return of this investment and the rewards fluctuate more as opposed to that of a whole life insurance policy.

You need to remember that when choosing between whole life and universal life in Kansas City, Missouri MO, you should be clear in your expectations. As you would with any other investment that you make, you better outline your goals, ask good questions and protect your beneficiaries.

Tags: life insurance premium, permanent insurance, permanent life insurance, whole life insurance