Whole life insurance provides permanent death benefit coverage and lasts for the entire lifetime of the insured. The death benefits are paid to the beneficiary upon the death of the insured. Whole life insurance policies have a guaranteed premium, fixed costs, and stable dividend crediting. The death benefit typically increases over time.
Indexed universal life insurance is designed for more accumulation with greater flexibility. It includes more flexible premiums and is typically based on an annual renewable term platform. Earnings on a universal life insurance policy can be tied to a market index with a guaranteed minimum return.