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What is Term vs. Universal Life Insurance

Term and universal life insurance policies are two very different forms of life insurance offered by many insurance agencies. Term life insurance is a form of non-permanent life insurance in which a specific premium is paid over a certain period of time in exchange for coverage specified by the free term life insurance quote. Universal life insurance is a permanent type of life insurance which essentially assures coverage dependent upon the universal life insurance quote until death so long as the premium is met. Life insurance instant quotes are usually available for both forms of insurance.

Term Life Insurance

Term life insurance is one of the oldest and simplest forms of life insurance. A free term life insurance quote involves establishing a premium that will be paid over a period of time. Provided that premiums are met, the death benefit established in the quote will be paid to a beneficiary if the policy holder should die during the specified period of time. The death benefit from term life insurance is often used as a way of covering financial needs associated with death, such as debt and funeral costs. The remainder is left as financial support for the beneficiary. Life insurance instant quotes are widely available for term life insurance policies.

Universal Life Insurance

Universal life insurance quotes are established as a premium that is to be paid by the policy holder for the remainder of his or her life. Any amount paid above the preset premium is added to the cash value of the policy. The cash value of a universal life insurance policy is usually compounded by an interest value set by the insurance company. Cash values of this form of life insurance policy can be withdrawn and are not typically subject to the tax penalties associated with a loan.

Benefits and Disadvantages of the Respective Policies

A free term life insurance quote is often the most economically practical in terms of the amount paid into premiums and the value of the death benefit. However, the policies have expiration dates and typically do not allow for cash values. Universal life insurance quotes are lifelong policies so long as the premium is met. The policy also allows for building a cash value and making withdrawals. However, higher the premiums are often more expensive than those of term life insurance policies. Life insurance instant quotes are also less common for universal insurance policies.

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