Buying life insurance is an important step that an individual should take if they have people in their life who depend on them financially, or who might get hurt financially if something were to happen to them. Now, when it comes to purchasing life insurance, people can have many choices such as whole life, term insurance, universal life etc. You can buy a term life policy, which will cover you for a preset period of time. Many people don’t need life insurance forever, and so for them a more cost-effective term life policy makes sense.
On the other end, whole life insurance doesn’t just cover you forever and your policy also accumulates a cash value. And that’s money you can either cash out at some point down the line or borrow against when you need them. Whole life insurance policy doesn’t endow until age 100; meaning it covers person for their entire life. Some of the life insurance policies can earn them a dividend as well.
Generally speaking, Term insurance doesn’t provide benefits if the person outlives but Whole life does provide benefits through their entire life and allow them to withdraw money from their built cash values.