Which insurance type has fixed premiums paid for life?

Whole life insurance is designed to provide lifelong coverage, and one of its key features is the requirement for fixed premiums that policyholders pay throughout their lives. This predictability in premium payments makes budgeting easier for individuals. Over time, whole life insurance also accumulates cash value on a tax-deferred basis, which can be accessed through loans or withdrawals, enhancing its attractiveness as a financial tool.

In contrast, other types of life insurance may have variable or adjustable premiums, or they may not provide coverage for the entire life of the insured. For instance, term life insurance is typically only effective for a specific period (the term), after which it expires, and it does not build cash value. Universal variable life insurance allows for variable premiums and death benefits, depending on investment performance, while adjustable life insurance provides flexibility in premium payments and death benefits, which can vary over time. Thus, whole life insurance stands out for its stability in premiums and lifelong coverage.