1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    No, Universal Life Insurance is not the same as Term Life Insurance. Universal Life is a permanent product that can have cash value, and Term is a temporary product that does not have cash value.

    However, some Universal Life policies are set up to resemble Term Life Insurance. They are sometimes called hybrids, because they have some elements of UL and some elements of Term. In essence, they are Universal Life policies that guarantee that the policy will not lapse for a set number of years at a set premium. That part is like Term Life. The part that is different from Term is that these UL policies can be extended by simply dumping in more premium.
    Answered on September 9, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Universal life is a permanent form of life insurance. That is, the policy is designed to last a lifetime. Term insurance is temporary insurance and provides a death benefit only when the death occurs during the period of the policy. The universal life is a flexible payment policy. At the owner’s discretion the premium can be reduced or skipped. When that occurs the policy can expire prior to the death of the individual, but it isn’t a term policy.
    Answered on September 10, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! And oh, no, they are definitely not the same. In fact, they are really at exact opposites of the life insurance spectrum. Term policies are very inexpensive, are very simple, and explain exactly what is paid and when. The cost and length of the policy are defined, and unchangeable. Universal life policies are exactly the opposite. The length of the policy is described as whole life, but can end if conditions of performance aren't met. The price you pay for the policy can also vary, as can the benefit to be paid, again based upon the performance of the policy. This policy requires that you pay attention to it's performance, to ensure that it does what you want it to do, while a term policy runs on auto-pilot. If you want more information, please inbox me, ok? I hope that helps, thanks for asking!
    Answered on September 13, 2014
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