What is the difference between whole and term life insurance?

Whole life insurance provides permanent coverage that lasts your entire lifetime and includes a cash value component that grows over time, which you can borrow against or withdraw. Premiums are fixed but significantly higher than term policies. Term life insurance covers you 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 premiums are much lower. If you outlive the policy, coverage simply ends with no payout. Term is generally recommended for people who need affordable coverage during specific financial obligations like raising children or paying off a mortgage, while whole life suits those seeking lifelong coverage and a savings component.