Hayward, CA – Whole and Universal Life Insurance from a Financial Advisor

Whole and universal life insurance – what’s the difference?

A guide to choosing the right plan for you, from your local financial adviser

Do you ever get overwhelmed with too many choices? Life insurance is meant to offer peace of mind to you and your family, but choosing from the seemingly endless list of plans and providers might feel daunting. That’s where I can help.

I’m part of a team of qualified financial professionals helping the Hayward community make smart financial decisions, plan for retirement and reach their long-term goals. A huge part of what I do involves making sure clients are covered by the right life insurance plan for their needs.

Quality life insurance coverage is a vital part of your long-term financial planning. With the wide selection of options available, there’s likely a plan that caters to your unique situation.

Generally, there are three common types of life insurance: term, whole and universal. Term is simple: you’re covered for a term of a certain length of time. The other two are forms of permanent life insurance and are a bit more complex.

Learn the difference between whole and universal life insurance to decide if it’s best for your situation, before discussing with a professional.

Whole life insurance

• Whole life remains in effect until the insured passes away, as long as applicable premium payments are made.
• Whole life has a set death benefit amount.
• Whole life has premiums that don’t change over time, in most cases.
• Whole life can build cash value.
• Whole life can earn yearly dividends in some cases. They’re typically paid out each year by the provider at the determination of the insurer but are not guaranteed to be paid.

Universal life insurance

• Universal life is customizable to fit your changing needs as time passes.
• Universal life offers adjustable premium and death benefit amounts.
• Universal life can build cash value – if premiums are paid and cover the cost of insurance. If not, you could lose coverage.
• Universal life must be monitored regularly.

To summarize, whole life insurance offers a guaranteed death benefit, set up front, and has a consistent premium payment amount. Universal life offers a death benefit that can be raised and lowered with changing premium amounts.

There’s no single right answer when it comes to which form of permanent life insurance is best. What’s right for you depends on your personal situation. That could even mean opting for multiple types of insurance coverage.

Need help figuring out what’s best for your needs? Give me a call to get started today.

* Securities and advisory services offered through MWA Financial Services, Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA, SIPC.