Whole life insurance and Term Life insurance are two very different products that serve very different purposes. Whole life insurance is full life insurance that has lifelong benefits. Temporary life insurance guarantees for a certain period of time. It is not eligible for company dividends.
The policyholder’s death benefits are paid in the form of a death benefit only, with no cash accumulation. Whole life insurance and Term Life insurance are two very different products that serve very different purposes.
Term policies are the most basic form available on the market today. The amount to be paid by the insurer is specified in advance, usually as a lump sum. There are various insurance policies such as lifetime, universal health, flexible universal health, and flexible pension. In whole life, the insurance company keeps the premiums as well as any additional funds you add to your account.
References
- https://www.jstor.org/stable/252615
- https://www.nber.org/papers/w9925