Basically life insurance is divided into two major types. They are permanent and term life insurance policies. The permanent life insurance is a long term life insurance policy. On other hand, term life insurance is a fixed period life insurance policy. The two policies vary from one another in many ways, such as:
- Coverage: The whole life insurance gives long term coverage whereas term life insurance gives short term coverage. In term life insurance you can insure the person life for a specific period of time and after this period you will not get any coverage.
- Death benefits: Whole life insurance guarantees death benefits. Whereas, in term life insurance, one can get death benefits only when the person die within the insured period of time.
- Cash value: The whole life insurance gives some cash value for the policy holders, if they want. It means that, the person can take loan on his whole life insurance premiums. Such type of facility is not provided by the term life insurance.
So, before opting for any kind of life insurance, it is better to evaluate the pros and cons of both the policies.