Critical Differences Between Term Life and Universal Life Insurance Life insurance is a powerful financial tool — but choosing the right type matters. In 2025, the two most common options are term life and universal life . Here’s how they compare, and which one might be right for you. ⏳ Term Life Insurance Provides coverage for a fixed period (e.g. 10, 20, or 30 years) Affordable premiums — ideal for families on a budget No cash value — pure protection Expires at end of term unless renewed ♾️ Universal Life Insurance Permanent coverage that lasts your entire life Flexible premiums — pay more or less over time Includes a savings component that grows tax-deferred Can be used for wealth transfer or long-term estate planning 🧮 Cost Comparison Term life is much cheaper initially (up to 5x less than universal) Universal life costs more but offers cash value and flexibility 💡 Which One Should You Choose? Choose Term Life: If you want simpl...