Whole life insurance, or permanent life insurance, is a type of life insurance that provides coverage for the policyholder's entire lifetime as long as the premiums are paid. It also has a savings component that allows the policyholder to accumulate cash value over time that can be used for retirement, loans, or whatever else may be needed. The death benefit is guaranteed and does not decrease over time.

 

Some whole life insurance policies also pay dividends which can increase the cash value and death benefit of the policy. In addition, whole life insurance can be used for estate planning and the premiums remain constant over the life of the policy. It is generally more expensive than term life insurance.