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

Term life insurance and whole life insurance are two different types of life insurance policies. The key difference lies in their respective durations and cost structures. Term life insurance provides coverage for a specified term or period, such as 10, 20, or 30 years, and is typically less expensive than whole life insurance. It offers a death benefit to the beneficiaries if the insured person passes away during the term. Whole life insurance, on the other hand, is a permanent life insurance policy that provides coverage for the entire lifetime of the insured. It incorporates both a death benefit and an investment or cash value component, which grows over time. Whole life insurance premiums are higher than term life insurance premiums, but whole life policies offer lifelong protection and can accumulate cash value that can be accessed during the insured's lifetime.