Whole Life (participating or “par”)
Increasing face amount
Builds guaranteed cash value
Pays dividends which builds higher cash value and increases face amount
Flexible on payments
Cash value protects policy if payments are missed
Paid up insurance
Pros: flexible to changing circumstances, earnings build up tax deferred; dividends can allow you to reduce or stop premium payments over time
Cons: more expensive
Best ages to start: child, 20’s or 30’s
Guaranteed Universal Life
Guarantees benefit, if timely payments are made
Fixed Face Amount
Little or no cash value build up
lifetime guarantee depends on timely payments
Pros: less expensive , easy to understand.
Cons: Timely payments required over a long time frame; not flexible to changing circumstances and needs; premium payments likely throughout life span
Best ages to start: 60’s, 70’s or 80’s