Whole life insurance is a type of permanent life insurance that provides coverage for the entire life of the insured person, as long as the premiums are paid. Unlike term life insurance, which only provides coverage for a specific period of time, whole life insurance provides lifelong protection. The premiums for whole life insurance are typically higher than those for term life insurance, but the policyholder also builds up a cash value that can be borrowed against or withdrawn.
Whole life insurance is often used to provide financial security for the insured person's family in the event of their death. The death benefit can be used to pay for funeral expenses, outstanding debts, or to provide income for the family. The cash value can also be used to supplement retirement income or to pay for unexpected expenses.