Like its name indicates, whole life insurance can provide lifelong coverage. This type of policy, similar to term insurance, will pay your beneficiaries if something should happen to you, but it may also include an investment component that can be utilized by the owner throughout the policy's lifetime. That investment component is known as cash value accumulation. The cash value of your policy is tax deferred and grows at a guaranteed rate so long as your premiums are paid as they're due. If your policy has cash value, you may have the option to borrow money against your policy or surrender it all together, which means that you may be able to cash in your policy for what it is currently worth. This can be helpful to policyholders who incur financial hardship or unexpected bills such as medical expenses. It should be noted, though, that if you borrow against your policy, it must be repaid in order for your death benefit to remain unaffected. And if you choose to surrender, you will no longer have coverage. Because it offers lifelong coverage, as well as the potential for cash value benefits, whole life insurance is understandably a more expensive option in most instances. A whole life policy may be a good fit if you have expendable income you'd like to invest by utilizing cash value accumulation, but still want to help ensure your family is protected.