Term life insurance and whole life insurance are two different types of insurance. The time for term life insurance is set for a period of time where as the whole life insurance is the permanent insurance and offers a premium which is guaranteed for lifetime.

Term Life Insurance:

Term life insurance is a kind of insurance which covers only for a specific period of time. You have to pay a certain amount monthly until the term reaches to its end. After that you may or may not have the ability to renew the insurance. But if you wish to renew then the premium will typically be higher and will be based on your age.

Advantages And disadvantages Of Term Life:

- Lower premiums: Term life insurance is the least expensive policy.

- Full payout: This is the best advantage of term life insurance. you get the full amount of your insurance policy if you die within the term. It can be helpful for your family.

- Term limit for policy: There is a limit to the time period of term life insurance. It exists for a little duration of time which is often ranging from 5 to 30 years. The positive thing of this term limit is that you will know how much the policy rate costs. The downside is that you do not get a chance to renew and even if you do the cost will increase.

- No cash value: this is another disadvantage that you cannot build up your cash that you can borrow against down the road.

Whole Life Insurance:

Whole life insurance is also known as permanent insurance as it is an insurance which offers a premium guaranteed for rest of your life. this means that you will not see an increase in premium because you age.

Advantages And Disadvantages Of Whole Life insurance:

- Stable premiums: this is the biggest advantage of whole life premium as you will not see an increase in your premium whole life. The amount which you pay today will be the same which you will pay after 20 to 30 years. As long as you will continue to pay,your beneficiary will receive the benefits upon your death.

- Cash value : Through whole life insurance you gain interest as the cash value increases. If you wish to cash out your whole life policy you will have to pay taxes for any cash amount which you put in.

- Higher premiums: this is an advantage of whole life insurance as the premium is usually higher than the term life insurance which stops a lot of people from getting life insurance.