You’ve been thinking about it for a while now and you’re ready to start shopping around for the best universal life insurance quotes you can find?

But wait: you’ve also found information on whole life insurance quotes online, and now things are getting confusing, right?

Naturally, as with any product or service you buy online it’s always best to know the difference between various options, their costs and whether they have all the components you need to fulfill your long-term goals.

What are the key differences between these types of insurance?

Whole Life policies remain in force for the entire life of the insured and require annual premiums.  Over the life of the policy the insured can accrue cash value, which may be borrowed against provided all premiums are paid in full and other factors are met.

Universal coverage is also known as “permanent” insurance and is based on a cash value.  Premium payments are established that are higher than the cost of the insurance, and these extra payments help the insured build up cash value over time.

Unlike whole life, universal coverage can provide quicker wealth-building opportunities especially for younger policyholders, because the term of their policy may be longer and they will have been making those extra payments each month—all of which is tied to an index rate and either goes up or down in value, depending on the current rates.

Over the long haul, universal and whole life coverage are excellent ways to ensure that your loved ones are taken care of in the event of your death, or tapped for cash for life’s unexpected and planned events along the way, such a college education; a mortgage; or construction of a vacation home, for example.

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