Whole Life Insurance covers the insured person for the remainder of their life (whole life) so long as the premiums are paid.
Although the premiums are more expensive, the whole life policy offers advantages that are not generally available with the term life policy. The whole life policy will build cash value over time that may be borrowed against, used in time of need or used to pay off the whole life policy to eliminate premiums.
Also, generally, the premiums never change since the policy never needs to be upgraded due to the term expiring. Other attractive benefits for whole life policies are some come with a long-term care ride, or in some cases, a long-term care policy may come with a life insurance rider. These policies give insured the dual protections of a life or long-term policy.
Different types of life insurance fit different people. Whole life insurance is indicated for individuals in a variety of situations. These situations include the need to provide dependent family members with funding after the head of a household dies; to liquidate business debts, mortgages or provide family members with funds to pay down debts; to fund requests from charities; and to ensure cash is instantly or quickly available to surviving family members. There are a variety of other circumstances that may indicate whole life insurance for individuals.
The benefits of whole life insurance far outweigh those of term life insurance policies. Whole life policies have a living benefit and an accrual of cash for family members after the insured passes, term life is a temporary insurance. Term life insurance simply provides insurance for the policyholder and offers only a death benefit. Also, while whole life insurance offers coverage for the entire life of the policyholder, term life insurance has a fixed period of time where the premium remains level. Eventually, the premium increases each year to the point it becomes unpayable or the policy simply terminates.