What is the difference between term and whole life insurance?

Term life insurance provides coverage for a set period — typically 10, 20, or 30 years — and pays a death benefit only if you die during that term. Whole life insurance is permanent coverage that lasts your entire lifetime and builds a cash value component you can borrow against. Term insurance is significantly cheaper for the same death benefit, while whole life offers lifelong coverage and a savings element at a higher cost.