In Whole Life Insurance, the insured has coverage for the whole life. Unlike term insurance, which only pays out if insured die during the policy term?

Whole Life insurance always pays out in the end, so the insured will always get some guaranteed money.
Based on the needs the insured can combine whole life with term insurance to cover any specific debts.

Life insurance provides compensation in the event of the insured’s death. There are different variations of life insurance policies, but all can be categorized as either temporary (term life insurance) or permanent (universal life insurance, whole life insurance, and limited pay life insurance).

In a Life insurance policy, there are four main parties:

1. the insurer (Insurance Company), usually a private life insurance company who underwrites the life insurance policy. This party is responsible for paying a benefit for the policy.
2. The insured is the person who is covered by the life insurance policy. Generally, this means that a benefit will be paid in the event of the insured’s death.
3. The owner of the policy is the person or company who actually purchases the life insurance. In the majority cases the insured and the owner is the same.
4. The beneficiary is the person/s or company who receive a benefit from the life insurance policy in the event of the insured’s death.