What is the difference between term life and whole life insurance?

Term life insurance and whole life insurance are two different types of life insurance policies, each serving distinct purposes and offering varied benefits. Term life insurance provides coverage for a specified period, typically ranging from ten to thirty years. If the policyholder passes away during this term, the beneficiaries receive a death benefit. However, if the policyholder outlives the term, the coverage ends, and there is no payout or cash value accumulated. This type of insurance is often more affordable, making it a popular choice for individuals who want to provide financial security for their families during their working years or while they have specific financial obligations, such as a mortgage or children's education. On the other hand, whole life insurance, also known as permanent life insurance, provides coverage for the policyholder's entire lifetime, as long as premiums are paid. In addition to offering a death benefit, whole life insurance accumulates cash value over time, which the policyholder can access through loans or withdrawals. This cash value grows at a guaranteed rate, making whole life insurance a long-term investment option. However, whole life policies are typically more expensive than term policies due to the lifelong coverage and cash value component. In summary, the primary difference lies in the duration of coverage and the presence of cash value. Term life insurance is suitable for those who seek affordable protection for a specific time frame, while whole life insurance benefits those who desire lifelong coverage and an investment component. For more detailed information regarding specific products or options, it may be useful to visit the official Nationwide website.