One of the biggest differences between the two life insurance options is the length of coverage. Whole life insurance is a type of permanent coverage that doesn't expire, while the term option has an end date and usually expires after 10, 20, 30, or 45 years.
Apart from that, whole life insurance carries a cash value component. This unique feature works as an investment account that you can borrow against and it’s exclusive to whole life policies.
Another huge difference is cost-related. If you decide to purchase life-long coverage, keep in mind that even the most affordable whole life insurance options are at least six times more expensive than term policies.
Lastly, if you decide to purchase a whole life policy from a mutual company, you can expect an annual dividend each year the company does well.