Is whole life better than universal?

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Whole life insurance offers consistent premiums and guaranteed cash value accumulation, while a universal policy provides flexible premiums and death benefits. You can borrow against the cash value of a whole or universal policy.

What happens to cash value in universal life policy at death?

Universal life insurance has a cash value component that is separate from the death benefit. Each time you make a premium payment, a portion is put toward the cost of insurance (such as administrative fees and covering the death benefit) and the rest becomes part of the cash value. Dec 7, 2021

Is IUL tax free?

Tax-free growth and distributions: “IUL distributions are tax-free versus tax-deferred in the other vehicles,” says Chris Abrams, an IUL expert at Abrams Insurance Solutions. That means you don’t have to pay taxes on the money you eventually draw from the cash value of the IUL. Feb 10, 2022