Whole life insurance may also be called permanent life assurance. It is an insurance that endows the insured person with death protection for her whole lifetime. An insurance payout is rewarded to the beneficiaries stated in the contract when the insured person dies. Whole life policies usually include an investment section that builds up a cash value.

Term life cover has a time limit on the period of coverage. The time limit may be extended by renewing the term policy once it expires. The insured person’s beneficiaries will receive no insurance payout if the policy expires before the insured person’s death.