What's The Difference Between Whole Life And Term Life Insurance? 
Whole Life covers you for your `` whole life '' . Term Life covers you for a term , or set number of years . Whole Life has cash value that can be utilized while you are still alive . Term Life does not -LRB- except for Term with living benefits , which allows you to use part of the death benefit if certain triggers are met -RRB- . Whole Life allows you to pay the entire premium at once , or in a limited number of years , after which no more premiums are owed . Term Life requires that you make periodic payments over the entire duration of the policy . If you drop a Whole Life policy after some length of time , you will usually have a reduced paid up policy that you can keep without making further premium payments . If you drop a Term policy , your coverage ends and you do not have any return of cash -LRB- unless you buy ROP , or return of premium Term Life -RRB- . With participating Whole Life , you may get dividend checks over the years . With Term Life , the only benefit you get will be if you die before the term ends . Whole Life costs more because it is a permanent product and has cash value in addition to death protection . Term Life costs less because it is temporary and offers pure death protection . 