Whole life insurance differs from term life insurance in several key ways. Unlike term life, which covers you for a specific period, whole life insurance provides coverage for the entirety of your life, as long as premiums are paid. One of the major advantages of whole life insurance is that it builds cash value over time, which can be borrowed against or withdrawn by the policyholder.

Whole life insurance is more expensive than term life insurance because it combines a death benefit with a savings component. The cash value grows over time at a fixed interest rate, and policyholders can use this value during their lifetime. Whole life insurance is often used as a long-term financial planning tool, providing both life insurance coverage and a means to accumulate wealth.