How does whole life insurance differ from universal life insurance?

Whole life insurance is characterized by its fixed premiums, which remain constant throughout the life of the policyholder. This means that once the premium is set at the policy's inception, it will not change, providing predictability in terms of payments.

In contrast, universal life insurance is designed with flexibility in mind. It allows policyholders to adjust their premium payments and even their death benefits over time, depending on their changing financial needs and goals. This flexibility is a key feature of universal life insurance, allowing individuals to adapt their policy to fit their current circumstances.

Thus, the distinction lies in the nature of the premiums and the benefits structure. Whole life provides stable and predictable costs and benefits, while universal life caters to a more adaptable approach, aligning better with the policyholder’s evolving financial landscape. This understanding of the fundamental differences underscores the correct choice in the context of the question.