What are the pros and cons of term life vs. whole life?

The biggest difference between the two types of policies is that while both pay a death benefit to your beneficiaries, whole life also provides permanent (lifelong) coverage with a cash value component. That added value – along with the certainty that the insurer will eventually have to pay a death benefit – means that a whole life policy premium is higher than for a term policy. Here are some of the other features and differences that can help you decide which type of policy is best for your needs: