How does term life insurance differ from whole life?

Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years, and pays a death benefit only if you die during that term. It has no cash value and is generally much cheaper. If you outlive the term, coverage ends and you receive nothing back. Whole life insurance covers you for your entire life and includes a cash value component that grows over time on a tax-deferred basis. You can borrow against this cash value or surrender the policy for it. Whole life premiums are significantly higher than term, sometimes 5 to 15 times more. Term is usually recommended for people who need straightforward income replacement, while whole life suits those with permanent estate planning or wealth transfer needs.