Permanent Life Insurance
Whole life insurance, sometimes called "permanent insurance" or "ordinary life," is designed to stay in force throughout one's lifetime. Whole life insurance also provides a number of useful tax benefits such as: borrowing against the policy without tax, or the beneficiary being free of federal income tax when they collect the proceeds.
Universal life insurance is used for long-term obligations such as estate growth, death taxes, and retirement planning. Universal life insurance provides the policy owner with greater flexibility and higher yield potential than traditional whole life policies.