Whole life insurance is a type of life insurance policy that provides coverage for the entire life of the insured individual. It is a form of permanent life insurance, which means that it does not expire as long as the premiums are paid.

In a whole life insurance policy, the premium payments are typically fixed for the life of the policy. A portion of each premium payment goes toward the cost of the insurance coverage, while the rest is invested by the insurance company to build cash value over time. The cash value of the policy grows tax-deferred, meaning that taxes are not due on the earnings until the policy is surrendered or a withdrawal is made.

The policyholder can borrow against the cash value of the policy or use it to pay premiums if they cannot make payments for a period of time. When the insured person dies, the death benefit is paid to the policy’s beneficiaries tax-free, and it is typically higher than the total amount of premiums paid over the life of the policy.

Whole life insurance can be a good option for those who want to ensure that their beneficiaries receive a guaranteed death benefit, as well as those who want to build up savings over time. However, whole life insurance tends to be more expensive than term life insurance, which provides coverage for a specific period of time.