The short answer
Term life insurance covers you for a set number of years and pays a death benefit only if you die during that time. Whole life insurance is designed to stay in force for your entire life, as long as premiums are paid, and it builds cash value along the way.
Term is usually the lower-cost way to buy a given amount of coverage. Whole life costs more because it is built to last and includes the cash-value component.
How long the coverage lasts
Term policies are commonly sold in periods such as 10, 20 or 30 years. When the term ends, coverage generally ends, although some policies can be renewed at a higher premium or converted to permanent coverage within a set window.
Whole life has no end date in the same sense. It is meant to be in place whenever death occurs.
What you pay
For the same death benefit, term premiums are typically much lower than whole life premiums, especially at younger ages. That lets many families afford a larger amount of coverage during the years when the need is greatest.
Whole life premiums are typically level, and are payable either for life or for a set number of years, depending on the policy.
Cash value
Term life has no cash value. If you outlive the term, the policy pays nothing.
Whole life builds cash value according to the terms of the policy. It can generally be reached through policy loans or withdrawals. Doing so can reduce the death benefit and may have tax consequences, so it is worth asking a tax professional about your situation.
Which needs each one tends to fit
Term is often considered for needs that have an end date: the years until the children are grown, the years left on a mortgage, the working years in which a family depends on a paycheck.
Whole life is often considered for needs that do not end: final expenses, leaving something to a spouse or children, or coverage for a lifelong dependent.
You do not have to pick only one
Some families use a term policy for the large, temporary needs and a smaller permanent policy for the lifelong ones. Whether that makes sense depends on your budget and your goals.
A licensed professional can show you what each option would cost for your age and health, so you are comparing real numbers and not general descriptions.
Product availability varies by state and carrier. All coverage is subject to carrier underwriting and approval; features, premiums, exclusions and riders depend on the specific policy. This article is general education, not a recommendation for your situation. DNA Life & Legacy and its agents do not give tax or legal advice. Please consult your own tax or legal professional about your situation.