Hi everyone I'm Laura Adams and you're listening to the Money Girl

Podcast. This is the second episode in a two-part series about whether you should buy permanent life insurance.

In part one, I covered the differences between permanent and term life.

And I reviewed one common type of permanent policy called Whole Life.

So be sure to listen to Podcast Number 312 for more information,

if you haven't done that already.

In this episode we'll cover two more types of permanent life policies,

universal and variable.

Plus you'll learn five smart tips to buy permanent life insurance if it's right for you.

There are three main types of permanent life insurance, whole, universal, and variable.

Although the benefits they provide are different,

each type covers you for your entire life.

Term life insurance, on the other hand,

only pays a benefit if you die during a specified period of time such as 10 or 20 years.

So let's cover the three main types of permanent life insurance.

I'll just give you a summary on Whole Life since we covered that in part one.

Whole Life gives you a guaranteed death benefit and a guaranteed rate of return on your cash value

when you pay a fixed annual premium. This is the most

straightforward type of permanent life policy but it's also the most expensive

because it comes with no risk to the buyer.

The second type of permanent life insurance is called Universal Life.

It doesn't offer the guarantees of a whole life policy,

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