What is one advantage of Whole Life insurance over Term Life insurance?

One significant advantage of Whole Life insurance over Term Life insurance is that it provides lifelong coverage and builds cash value. Whole Life insurance is designed to remain in force for the entire lifetime of the insured, ensuring that the death benefit will be paid out regardless of when the insured passes away, as long as the premiums are paid. This contrasts with Term Life insurance, which only offers coverage for a specified term and expires at the end of that term, leaving no value behind if the term ends without a claim.

Additionally, Whole Life policies accrue cash value over time, which the policyholder can borrow against or withdraw in certain situations. This cash value component enhances the policy’s utility, as it can serve as a financial resource for the policyholder during their lifetime. The cash value also offers a savings or investment-like feature that can grow tax-deferred.

This combination of lifelong coverage and the accumulation of cash value distinguishes Whole Life insurance as a more comprehensive financial product compared to Term Life insurance, which does not offer these features.