human
Can you explain the difference between whole life and term life insurance?
assistant
Whole life insurance is a type of permanent life insurance policy that provides coverage for the insured’s entire life, as long as premiums are up to date. This type of policy offers customers a guaranteed death benefit and cash value, which accumulates over time. Term life insurance is a type of policy that provides coverage for a set period of time, such as 10 or 20 years. Term life insurance policies do not build cash value and generally have lower premiums than whole life policies. In the event of the policyholder’s death, the policy’s beneficiaries receive the pre-determined death benefit. If the policyholder outlives the policy, no money is paid out in death benefits.