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Term vs Whole Life vs Universal Life

May 16, 2025

Term life insurance provides coverage for a specific period, offering a death benefit to beneficiaries if the policyholder dies during that time. Whole life insurance offers lifetime coverage and builds cash value, while universal life insurance provides lifetime coverage with more flexibility in premiums and death benefit amounts. 

Term Life Insurance: 

  • Coverage: Provides a death benefit if the insured dies during the policy term (e.g., 10, 20, or 30 years). 
  • Cash Value: Does not build cash value. 
  • Premiums: Generally lower and fixed for the term. 
  • Suitability: Best for short-term coverage needs or when affordability is a primary concern. 

Whole Life Insurance: 

  • Coverage: Provides lifetime coverage as long as premiums are paid. 
  • Cash Value: Builds cash value that can be borrowed or withdrawn, potentially earning interest. 
  • Premiums: Higher and typically fixed for life. 
  • Suitability: Suitable for those seeking long-term protection and cash value accumulation. 

Universal Life Insurance: 

  • Coverage: Provides lifetime coverage, similar to whole life. 
  • Cash Value: Builds cash value, often with more flexibility in premium payments and death benefit amounts. 
  • Premiums: Can be adjusted within certain limits. 
  • Suitability: Offers a blend of coverage and flexibility, allowing for changes in premiums and death benefits as needs evolve. 

Which coverage is right for you? Schedule an appointment with your Ohio CU Financial agent to find a policy tailored specifically to your needs and budget.

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