Whole life insurance policies provide immediate, guaranteed death benefit coverage for the insured's lifetime, as long as required premiums are maintained. Whole life policies grow cash value at a set rate, which can be used for future needs.

While term life policies provide coverage for a limited time, i.e., 20 years, whole life policies offer a guaranteed lifetime death benefit (when required premiums are maintained) and grow cash value at a set rate. These tax-advantaged funds can be borrowed against for future needs.

Whole life insurance works by creating an immediate, guaranteed death benefit, with permanent coverage as long as required premiums are maintained. Whole life policies also grow cash value at a set rate, which can be borrowed against for future needs.

Several factors determine the cost of whole life insurance premiums, including the amount of coverage and the insured's age and health. Whole life offers a guaranteed lifetime death benefit (when required premiums are maintained) and cash value growth, which can make it more expensive than temporary policies.