Life insurance. Not the most exciting topic. But having the right type of life insurance policy in place is crucial.

Liveoak Agency, Inc. has several policy options to choose from, and our expert agents can help you choose the one that best fits your financial needs and goals. Many folks find one of the three types of Permanent Life Insurance options to be the best fit for them.

What Is Permanent Life Insurance?

Permanent Life Insurance, often referred to as Whole Life Insurance, provides protection for your entire lifetime as long as you continue to pay the premium. This type of policy has set death benefits, a fixed premium, and builds cash value over time. There are three variations of permanent life insurance:

  • Traditional Whole Life
  • Universal Life
  • Variable Universal Life.


Traditional Whole Life

Traditional Whole Life Insurance is the most basic type of permanent life insurance – fixed premium and death benefit and accrued cash value. A whole life policy will be more expensive than term life insurance, but with a whole life policy, the policy owner has the guarantee of a minimum death benefit amount as well as an increase in cash value.

Universal Life Insurance

A Universal Life Insurance Policy differs greatly from the traditional whole policy. Unlike the traditional whole policy’s fixed premium, after the initial premium payment, a universal life policy offers the policy holder the option of adjustable premiums and flexibility in when the premium payment is due. In other words, the policy holder can pay more or less on their premium based on their financial status. A universal life policy does offer a guaranteed rate of return on cash value, but unlike the straight-up guarantee provided by a whole life policy, there are caveats to the guarantee embedded in the universal policy.

Variable Universal Life

A Variable Universal Life policy is similar in structure to a universal life policy, but the variable universal offers more investment options. As with any investment, your cash value can go up – and down. The policy holder will only receive the death benefit if the policy keeps an adequate cash value.

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