The size of the cash value depends upon the success of the investments made. The owner can adjust the premiums and the death benefits. If you outlive the stated term, neither you nor your beneficiaries collect any benefits. If you don't outlive the stated term, your beneficiaries collect the face value death benefits. Term life insurance is cheaper to buy than permanent insurance when you are younger, but the rates increase as you age.
Term insurance is usually easier to acquire than permanent insurance at any age.
Term life insurance is only temporary life insurance. Depending of the individual policy, however, you may be able to renew the policy or to convert it to another type that is more permanent. Whole Life Insurance Whole life insurance offers pure insurance on your life and provides you with an investment vehicle to accumulate cash value. The amount you pay for premiums includes the cost of the pure insurance and the amounts that are invested by the insurance company. The cash value may grow at a higher rate than the guaranteed rate, depending on the financial results of the insurance company's general asset account.