Whole life insurance is a type of permanent life insurance that provides coverage for the entire life of the insured person, as long as the premiums are paid. This type of insurance also has a savings component, called the cash value, that grows over time. The cash value can be borrowed against or withdrawn, but doing so will reduce the death benefit.
Whole life insurance is more expensive than term life insurance, but it offers several important benefits. First, it provides lifelong coverage, so the insured person’s family will always have a financial safety net in the event of their death. Second, the cash value component can be used to save for retirement, education, or other long-term goals. Finally, whole life insurance policies are typically guaranteed to renew, so the insured person will not have to worry about losing their coverage.