Universal Life insurance is permanent life insurance with a flexible premium structure and the ability to build cash value.
Universal Life policies provide a minimum guaranteed interest rate. However, this is not a guaranteed “rate of return” due to the effect of policy charges.
Term life insurance is basic life insurance coverage that provides protection for a specific period of time ("term"). It may be a suitable life insurance product if you need short-term death benefit protection and have temporary financial obligations, such as mortgage payments, car payments, or short-term debts. Coverage provides lower premiums for people who cannot afford permanent life insurance premiums. Should you decide you want permanent life insurance, you can convert your policy later on (within certain parameters).
¹ The death benefit may be included in your estate for federal estate tax purposes.