Whole life is permanent life insurance providing lifetime protection. Whole life builds cash value and has a death benefit paid out upon the death of the insured person.
Whole usually costs up to 2-5 times more for the same amount of life insurance, compared to term life.
Term life insurance is temporary coverage lasting for a specific period of time, usually up to 30 years.
Term life is pure protection, providing a death benefit, but it does not build up any cash value inside the policy.
If the insured person is alive when the policy term expires, there is no payout of any benefits.
Term life usually offers coverage for a term of 10, 15, 20, 25 or 30 years.
The longer your policy term, the higher your rate per $1,000 of life insurance coverage.
Learn more about whole life insurance vs term life insurance policies.