Policy is a contract between you and an insurance company for a defined period, typically between 10 and 30 years. During that term, you promise to pay a premium each month. In return, the company promises to pay a specific amount of money – a death benefit – if you pass away during the term.

Insurance is the simplest form of permanent life Insurance, with guarantees for the death benefit amount, premium costs, and cash value growth. Compared to universal life (another form of permanent coverage), whole life typically offers more guarantees but less payment flexibility.

Is a form of permanent life insurance that gives policyholders flexibility in paying premiums, a cash savings component, and a death benefit. Universal life insurance allows you to borrow against or cash in their savings portion, which grows tax-deferred over your lifetime.