Unlike term life insurance which covers you for a specific duration or term, with whole life insurance you are covered for your entire life. This cash value may be accessed during the insured’s lifetime either by withdrawing or borrowing against it. As you pay into a whole life policy over time, part of the premium is invested and generates cash value. There is also an investment or cash value component associated with most whole life policies.
Whole life insurance (sometimes used interchangeably with permanent life insurance) is a form of life insurance that provides you with coverage from the day the policy is bought and put in force until the day you die (in other words – for your entire life).
