How does a whole life policy differ from other types of life insurance?

A whole life policy is designed to provide coverage for the entire lifetime of the insured, as opposed to a specified term. This characteristic ensures that a death benefit is guaranteed to be paid out regardless of when the insured passes away, as long as the policy is in force, making it distinct from term life policies that only pay a benefit if the insured dies during the specified term.

While whole life policies do offer a cash value component that can grow over time, which some interpret as an investment opportunity, that is not their primary distinction. Additionally, they typically have higher premiums compared to term policies because of the lifelong coverage and the cash value accumulation. Thus, the assurance of a death benefit at any age of the insured is the hallmark of a whole life policy, setting it apart in the landscape of insurance products.