What is the difference between a term life insurance and an universal insurance?

Term life insurance and universal life insurance are two common types of life insurance policies that offer different benefits and features.

Term life insurance is a temporary policy that provides coverage for a specific period, such as 10, 20, or 30 years. If you die during the term, your beneficiaries will receive a death benefit. However, if you outlive the term, the policy will expire and you will no longer have coverage. Term life insurance is generally the most affordable type of life insurance, making it a good option for people who need temporary coverage, such as to cover a mortgage or provide for young children.

Universal life insurance is a permanent policy that provides lifelong coverage. In addition to a death benefit, universal life insurance policies also have a cash value component that grows tax-deferred. You can access the cash value through withdrawals or loans. Universal life insurance policies are more expensive than term life insurance policies, but they offer greater flexibility and the potential for long-term savings.

Here is a table summarizing the key differences between term life insurance and universal life insurance:

| Feature | Term Life Insurance | Universal Life Insurance |

|---|---|---|

| Coverage | Temporary | Permanent |

| Cost | More affordable | More expensive |

| Flexibility | Less flexible | More flexible |

| Cash value | No | Yes |

| Tax-deferred growth | No | Yes |

Ultimately, the best type of life insurance for you depends on your individual needs and circumstances. If you are not sure which type of policy is right for you, it is important to speak with a qualified financial advisor.