Term Life Insurance is a type of life insurance policy that provides coverage for a specific period of time, or "term." If the term dies during the term, the policy pays out a death benefit to the beneficiary. If the policyholder does not die during the term, the policy does not pay out and the coverage ends on the expiry date.
Term Life Insurance is typically less expensive than Permanent Life Insurance, however, it does not build cash value or offer tax-advantaged savings like certain types of Permanent Life Insurance.
Visit our Term Life product page to learn more.

Universal Life Insurance is a type of Permanent Life Insurance that provides flexible premiums and the ability to adjust the death benefit. It combines the features of Term Life Insurance, which provides protection for a specific period of time, with the savings element of Permanent Life Insurance, which builds cash value over time. There are several types of Universal Life Insurance, a couple of which we can dive deeper on are:

• Indexed Universal Life Insurance
• Variable Universal Life Insurance

See the individual FAQs for each type to learn more.

Universal Life Insurance offers several advantages over Term Life Insurance, including:

• Flexible Premiums: Unlike other types of life insurance, Universal Life Insurance allows policyholders to adjust the premium amount and payment frequency based on their changing financial situation.
• Cash Value Accumulation : Universal Life Insurance policies have a cash value component that grows over time, based on interest rates and investment returns.
• Tax Benefits: The cash value of a Universal Life Insurance policy grows tax-deferred, meaning that policyholders do not pay taxes on the earnings until they withdraw them.
• Permanent Coverage: Universal Life Insurance provides coverage for the insured's entire lifetime*, as long as premiums are paid.
• Customizable Death Benefit: Universal Life Insurance policies typically allow policyholders to adjust the death benefit amount over time. This can be useful for those who want to increase or decrease their coverage based on changes in their financial situation.

*Policies typically mature, meaning they pay out the benefit amount, if the policyholder lives to be 120 or 121 years old (could be shorter, depending on the policy).
Learn more about how Universal Life Insurance compares to other insurance and wealth building vehicles in our Guide to Life Insurance.

Combination Life Insurance is a type of policy that combines elements of both Term Life Insurance and Permanent Life Insurance. With a combination policy, you get the coverage of a Term Life Insurance policy for a specified period of time, typically 10, 20, or 30 years. The policy also includes a savings component, similar to a Permanent Life Insurance policy, that can accumulate cash value over time.