Universal life is a type of permanent life insurance that is designed to provide coverage in the event of death. It can also include a cash value component that employees can borrow from. Term life insurance provides coverage for a set period of time, and can feature benefits like portability, so employees can keep it if they switch jobs or retire.
Whole life insurance can provide a death benefit that can be used for final expenses, college tuition or living expenses for beneficiaries, or to provide an inheritance. Some policies may also build cash value, which employees can borrow against if they need.