Distinctions between insurance poli...

Distinctions between insurance policy patterns engender different expectations of policy performance. Take, for example, participating whole life and universal life policies, which provide different packages of options. Whole life contracts generally have fixed, horizontal premiums and level death benefits, while universal life policies have flexible premiums, adjustable death benefits, and are unbundl with reverence to the various policy charges and interest credits--thus, universal life is said to be "transparent." Participating whole life policies pay dividends.

For several reasons, participating whole life insurance, in theory, might be look fored to provide higher cash values than universal life. Participating whole life provides