What benefit does whole life insurance have that term life insurance does not?

Whole life insurance offers the benefit of cash value accumulation, which is a distinctive feature not available in term life insurance. This cash value component grows over time, allowing policyholders to borrow against it or withdraw it during their lifetime, providing a financial resource that can be used for various needs, such as emergencies, education, or retirement planning.

In contrast, term life insurance provides a death benefit but does not accumulate cash value. It is designed to offer coverage for a specific term, such as 10, 20, or 30 years, and once that term ends, the policyholder receives no cash value, and coverage ceases unless renewed.

This characteristic of whole life insurance allows for a dual benefit: not only does the insured have life coverage for their entire life, but they also build a savings component that can be leveraged while they are still alive. This long-term financial growth aspect of whole life insurance makes it an attractive option for many individuals looking for both protection and an investment avenue.