First, you must understand that life insurance falls into two very broad categories: Whole and term. The fundamental difference between term and whole life is this: A term policy is life coverage only.

In life insurance, as long as it continues to pay the premiums, the policy does not expire for a lifetime. As the term applies, whole life insurance provides coverage for life or until the person the age of 100. Whole life building a cash value (usually beginning after the first year). In life, you pay a fixed premium for life instead of increasing premiums found on renewable term life insurance policy. Besides life insurance has a cash value feature that is guaranteed. In term and whole life the full premium paid to keep the insurance.

With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. Besides permanent lifetime insurance protection, Whole Life Insurance has a savings element that allows you to build cash value on a tax deferred basis. » Read more: Benefit of a Whole Life Insurance Policy