What is one advantage of whole life insurance compared to term life insurance?

Whole life insurance offers the significant advantage of cash value accumulation, which is a key differentiator from term life insurance. With whole life policies, part of the premium payment goes into a cash value component that grows over time on a tax-deferred basis. This cash value can be accessed by the policyholder through loans or withdrawals if needed, providing a form of savings that can be used for various financial needs during their lifetime.

In contrast, term life insurance solely provides a death benefit for a specified period and does not build cash value. Once the term expires, the coverage ends, and there is no return of premiums or cash accumulation. This distinction makes whole life insurance more than just a protection policy; it also serves as a financial asset that can support long-term financial planning.