What is the main advantage of whole life insurance compared to term life insurance?

Whole life insurance has a significant advantage of building cash value over time, which differentiates it from term life insurance. With whole life policies, a portion of the premiums you pay contributes to a cash value component, which grows at a guaranteed rate. This cash value can be borrowed against, used to pay premiums, or withdrawn, providing policyholders with financial flexibility and an added savings element. In contrast, term life insurance provides only death benefit coverage for a specified period and does not accumulate any cash value.

The other options highlight distinctions that do not favor whole life insurance. The cost comparison often shows that whole life insurance is generally more expensive than term life due to its lifelong coverage and cash value component. Whole life insurance also does not provide coverage for a limited time; it is designed to last for the life of the insured as long as premiums are paid. While some whole life policies may not require a medical examination, it is not a defining feature that sets them apart from term life insurance, which often does have health requirements.