• Life Insurance Comparison Chart

     Term Life InsuranceWhole Life InsuranceUniversal Life InsuranceVariable Universal Life Insurance
    Death benefit Yes Yes Yes Yes
    Designed for low cost Yes      
    Access to your money (1)   Yes Yes Yes
    Guaranteed cash value   Yes Yes  
    Market participation       Yes
    Tax advantages Yes Yes Yes Yes
    Flexible payments(2)     Yes Yes


    1 Access to your money – This assumes that the contract qualifies as life insurance under section 7702 of the Internal Revenue Code (IRC) and is not a modified endowment contract (MEC) under section 7702A. Most distributions are taxed on a first-in/first-out basis as long as the contract meets non-MEC definitions under section 7702A. Loans and partial withdrawals from a MEC generally are taxable and, if taken prior to age 59½, may be subject to a 10% tax penalty. 

    2 Flexible payments – This assumes there is sufficient cash value to cover monthly policy charges. Keep in mind that variable universal life insurance has market volatility so it’s possible that you may need to pay an additional premium on your policy.