Term and whole life insurance are two distinct types of life insurance policies. Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years, and pays a death benefit only if the insured passes away during the term. It is often more affordable and straightforward, making it ideal for temporary needs like covering debts or providing income replacement during working years. In contrast, whole life insurance offers lifelong coverage and includes a cash value component that grows over time, allowing policyholders to build savings they can borrow against or withdraw. While whole life insurance has higher premiums, it provides both a death benefit and a financial asset, appealing to those seeking long-term security and wealth-building options.
