Whole life insurance provides coverage for the insured person's entire lifetime, as long as the premiums are paid. Whole life insurance premiums are typically higher than term life insurance premiums. However, they remain the same throughout the life of the policy.

Whole life insurance policies build cash value over time. A portion of the premium payments goes toward the cash value component, which grows on a tax-deferred basis. The policyholder can access this cash value through withdrawals or loans during their lifetime. Whole life insurance pays a death benefit to the beneficiaries upon the insured person's death. This benefit is generally tax-free and can provide a financial legacy or income replacement for the beneficiaries.

Whole life insurance includes an investment or savings component that allows the cash value to grow over time. The insurance company typically invests the cash value in conservative instruments, such as bonds or stocks. Some whole life insurance policies may be eligible to receive dividends from the insurance company's profits. These dividends can be used to increase the policy's cash value, pay premiums, or be received as a cash payment.

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