Whole life insurance and universal life (UL) insurance are both types of permanent life insurance, offering a death benefit and a cash value component. The key differences lie in their structure and flexibility. Whole life insurance features fixed premiums and a guaranteed death benefit, making it more predictable but generally more expensive. Its cash value grows at a guaranteed rate set by the insurer. In contrast, Universal Life insurance offers flexible premiums and the potential to adjust the death benefit, making it more adaptable to changing financial situations. The cash value in a Universal Life policy earns interest based on current market conditions or a minimum guaranteed rate, which can lead to higher growth in good market conditions but also carries the risk of lower returns if interest rates drop. Both policies allow for loans and partial withdrawals from the cash value, but these affect the death benefit.