One product is not better than the other. The answer depends upon what your needs are, and your tolerance for risk.
Whole life insurance is better for people who want surety. There is a guaranteed death benefit, guaranteed interest rate, and guaranteed level premiums for life.
Universal life insurance is better for people who prefer flexibility. You can choose between different cash accumulation options (A or B). You can choose to make extra premium payments to accelerate cash accumulation, and and riders for long term care.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is mathematics. It allows the designers of insurance policies great latitude to design policies that will meet the specific needs of a group of people. Whole life is just right for some, while universal life is better for others. The company issuing the universal life policy often issues a whole life policy because it is just the way the numbers are manipulated. Buy the policy that seems best for you.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
First there are more than one kind of Whole Life and more than one kind of Universal life policies, but as indicated above what is best for YOU depends on your needs and goals. Personally I've seen too many times that people who buy Universal policies are uninformed as to how they work. Then when the cash value has been eaten up by the increasing cost of insurance and the policy eventually terminates due to non payment of the increased premium, the policy holder is no longer insured and can't afford a new policy!
With Whole Life as well as Universal you may pay more into the policy and increase the cash value as well as the benefit faster. But with Whole life the premium is guaranteed for life and the cost of insurance will not increase and devour the cash value and the policy! Personally I favor Whole Life with a Mutual company that pays dividends on top of the guaranteed interest.
.JPG){kind=avatar}
Whole life insurance is better for people who want surety. There is a guaranteed death benefit, guaranteed interest rate, and guaranteed level premiums for life.
Universal life insurance is better for people who prefer flexibility. You can choose between different cash accumulation options (A or B). You can choose to make extra premium payments to accelerate cash accumulation, and and riders for long term care.
With Whole Life as well as Universal you may pay more into the policy and increase the cash value as well as the benefit faster. But with Whole life the premium is guaranteed for life and the cost of insurance will not increase and devour the cash value and the policy! Personally I favor Whole Life with a Mutual company that pays dividends on top of the guaranteed interest.