What Is The Difference Between Universal And Term Life Insurance? 
That is a great question ! There are a couple of similarities , and a lot of differences between the two . They are alike in that they can provide a death benefit , should you pass while they are in force . They are alike in that the cost of the insurance rises as the policy ages . They are alike in that they both can end abruptly . Term policies have a designated end date , and to receive the death benefit , you must pass during that term period between policy start and end dates . There is no cash value , or perks , and the price may be set , or it may increase after a guaranteed period , at which point the rates increase . Universal life policies are term policies with whole life characteristics The policy is guaranteed to last a certain number of years -LRB- generally 20 -RRB- , but can end sooner , or last longer , depending upon your payments , and the performance of the policy investments . Term policies generally come with guarantees , UL policies generally come with few . They can grow large cash values , -LRB- and that is the hook that they will use to sell it to you -RRB- but there have to be several things that fall into place for that to happen . In a term policy your greatest risk is that you outlive your policy ; In a UL , it 's that you outlive your policy , and lose what you paid into it . Whole life policies fall right into the middle , and offer the least amount of risk , with the best guarantees , and benefits . Please contact me if you would like to discuss them , okay ? Thanks for asking ! 