There are four main types of whole life insurance: whole traditional life, universal life, variable life, and interest-sensitive whole life. Each type has its own set of pros and cons, so this is a great post to read to understand the differences before deciding. This blog post will discuss each type in detail and help you decide which one is right for you!

Traditional Whole Life Policy

A traditional life policy is a permanent life insurance plan that guarantees the death benefit for as long as you live. With this type of coverage, premiums are fixed and do not change throughout your life — even if health conditions deteriorate over time. Other benefits include tax-deferred cash value accumulation (savings grow without being taxed) and a guaranteed interest rate. If you want a permanent life insurance plan with a fixed premium, whole traditional life is a good option. Keep in mind that you may not increase the death benefit if your health declines later on in life.

Universal Life Insurance Policy

A universal life insurance policy is a permanent plan that allows flexibility in premiums and death benefits. This means you can increase or decrease your premium payments, as well as modify the amount of money paid out if something happens to you at any time during the duration of this type of coverage — even after 20 years! With this type of coverage, there is also no cash value accumulation as it’s tied directly to the performance of investments within your account.

Variable Life Insurance Policy

A variable life insurance policy is a permanent plan that allows you to invest in different funds (e.g., stocks, bonds, mutual funds). This means your policy’s cash value will vary depending on how the investments perform. If you are comfortable with taking on more risk, a variable life insurance policy could be a good option for you.

Keep in mind that there is always the potential to lose money if the investments tank. However, these policies have tended to outperform other types of life insurance policies over time.

Interest Sensitive Whole Life Insurance Policy

An interest-sensitive life insurance policy is a permanent plan that offers tax-deferred cash value accumulation and a guaranteed interest rate. Your premium payments are fixed with this type of coverage, even if health conditions deteriorate over time. There is no flexibility to adjust premiums or death benefits after taking out the policy, though, if something happens down the road.