Term life is the simpler product. You choose a length — usually 10, 20, or 30 years — and a death benefit. As long as you pay the premium, the carrier pays that benefit if you pass during the term. Nothing builds up. Nothing carries forward. When the term ends, the coverage ends, and that's by design.
Whole life and other permanent policies do something different. They cover you for your entire life as long as premiums are paid, and a portion of each premium accumulates inside the policy as cash value that grows on a tax-deferred basis. You can borrow against it. In some designs, the death benefit can grow over time as well. The trade-off is that the premium is meaningfully higher per dollar of initial coverage.
The honest way to choose between them is to ask what the coverage is for. Replacing income during the years a young family depends on you? Term usually wins on cost. Funding final expenses, equalizing an inheritance, or building a pool of money that's creditor-protected in many states and accessible during your lifetime? Permanent has a real case. Most well-built plans use both at different stages.
Educational content only. Nothing in this lesson constitutes legal, tax, or investment advice. Insurance products are governed by the policy contract issued by the carrier.