A term life insurance policy just covers your life for a certain period of time. A whole life policy is for your “Whole Life,” with a built-in cash value accumulation component. And a universal life is in between a term and a whole life policy. Sometime people follow the popular belief that says, “Buy term and use the difference.” But, what if there is a third alternative; instead of wasting your money in a Term life, what if you just buy a whole life policy, take out a loan from here, and use that money to buy any kind of investments that your heart desires? It could be investing in the market, in Real Estate or in precious metals. It gives you more power. When you buy a whole life policy, you abide by a simple rule, “Keep the life simple and get only something which is guaranteed.” And a whole life policy gives you a guaranteed 4% interest on the top of the possibility of getting a dividend check at the end of each year.