Life Insurance Comparison Table | Comparing Your Life Insurance Options: Term, Whole Life, and Indexed Universal Life (IUL)

Choosing the right life insurance policy can feel overwhelming, especially when there are several options, each with its own benefits. The key to making the right choice lies in understanding how different policies work and which one aligns with your financial goals.

Term life insurance provides coverage for a set period of time, offering affordable protection but without the cash value component. Whole life insurance, on the other hand, lasts for your entire life and builds cash value over time, but it can come with higher premiums. Then there’s Indexed Universal Life (IUL), which offers lifelong coverage and the potential for tax-free growth linked to a stock market index, providing more flexibility and opportunities for wealth-building.

To help you make an informed decision, we’ve created a comparison table that breaks down the pros and cons of each policy type. Whether you’re looking for basic protection, wealth-building options, or a flexible policy that grows with you, this table can guide you to the best choice.

Check out the Life Insurance Comparison Table below to learn more about the differences between Term, Whole Life, and IUL policies. Understanding these options is the first step toward securing your financial future. You can now review the key aspects of each type of life insurance, including coverage duration, cash value, growth potential, and more, to help clients make informed decisions. 

Aspect	Term Life	Whole Life	IUL
Coverage Duration	Fixed (10, 20, or 30 years)	Lifetime (as long as premiums are paid)	Lifetime (as long as premiums are paid)
Cash Value	None	Yes (grows over time)	Yes (grows based on index performance)
Premium Flexibility	None (fixed premiums)	Fixed premiums	Flexible premiums
Growth Potential	None (no growth)	Moderate (guaranteed growth, dividends possible)	High (linked to market index performance)
Tax Benefits	None	Tax-deferred cash value growth	Tax-deferred growth, tax-free loans
Market Risk	No market risk	No market risk	No direct market risk (downside protection)
Loan/Withdrawal Access	No access to cash	Yes, loan/withdrawal options available	Yes, tax-free loans/withdrawals available
Best For	Budget-conscious, temporary coverage	Long-term security, estate planning	Wealth accumulation, retirement planning
Cost Comparison	Lowest cost	Higher cost (compared to term)	Flexible cost depending on funding
Death Benefit	Guaranteed, but only during term	Guaranteed for life	Guaranteed with upside growth potential