You pay premiums for 20 years (or up until the age 65/their lifetime) and are covered for life. Once your payment window is over, you are still covered. Whole life is not the cheapest life insurance option, but in our opinion, it is the crème de la crème of life insurance policies. Not only is it fairly flexible, but this is permanent coverage. You lock into a rate, and will always be covered. This policy is more guaranteed than a marriage.

You are covered for the duration of the term. If you pass during the term, there is a payout. At the end of the term- if you are still alive, we will allow you to convert your policy to a Whole life policy (without new underwriting), as long as you do not increase the coverage amount. Your other options: are to take out another term policy; which usually comes with a new monthly premium amount of 10x what you were initially paying, or you can simply let the policy be terminated- and live on the wild side, without life insurance. Term insurance is the cheapest form of life insurance, and is great for temporary needs (mortgage, business protection, waiting for children to turn 18 and move out, etc.). It is also great for the individual who (for any reason), want or need to absolute cheapest coverage possible.

A UL policy is the most flexible policy that one can purchase. But because it is so flexible, this means that it is also quite complicated. What makes this policy so different, is that a UL policy is comprised of 2 components: life insurance coverage and investments in the market. This could be investments tracking the S&P, or investing in something more stable like a GIC, but the point is- while you’re investing in the market, you also have life insurance coverage; all built into one policy.