Since the inception of universal life insurance in the late 1970’s, the whole life world has felt threatened and rightfully so. Universal life insurance boasted a myriad of benefits that improved upon many of the drawbacks that long plagued whole life insurance.
And the one argument the whole life insurance champions have long leaned on is the guaranteed aspect of whole life insurance vs. universal life insurance.
But does this angle really work for whole life insurance? Conceptually it makes sense. And the guaranteed column is guaranteed. But practically speaking does this argument matter? And if it doesn’t, does this spell trouble for whole life insurance?