Whole life offers certainty but at steep cost. Premiums run 5-15x higher than term for equivalent death benefits. The guaranteed returns barely beat inflation, meaning your cash value loses purchasing power over time.
Universal Life Insurance provides flexibility whole life lacks. You can adjust premiums and death benefits within limits. Cash value earns interest based on money market rates or minimum guarantees. This flexibility comes with risk — if interest rates drop or you underfund the policy, it can lapse worthless [^43^].