For answers to these questions and to learn more aboutlife insurance terminology, choose from the categorieslisted on the left side of this page. It provides a death benefit, has no cash value, and is the lowest cost life insurance product available. Universal Life is a flexible premium, adjustable-benefit life insurance contract which accumulates cash value. Depending on certain factors, premium payments could be skipped in particular years at the policy owner's discretion. The adjustable benefit allows the policy owner to increase or decrease the stated death benefit, subject to certain guidelines.
Whole Life is the most basic type of permanent life insurance.
Your premium will purchase a specific death benefit and produce a specific cash value, which are guaranteed for the life of the policy as long as the premiums are paid. Whole life premiums are usually higher than term premiums, but are guaranteed not to increase. This estimation is not exact, however, and many factors should be taken into account in determining your coverage amount. It is recommended that your insurance advisor be contacted if you are unsure of the amount of coverage you want to purchase. Call AAA today if you would like a no-obligation insurance needs analysis.