Term Life Insurance is a type of life insurance policy that covers an indvidual for a fixed term. The insured is required to pay certain specified amount of premium periodically to get the term insurance cover. Once the specified term is over the term insurance cover stands to be cancelled unless the insured reenters the agreement and is ready to pay the other specified premium for the extended term. If the insured dies in the specified term of insurance cover, then the beneficiary gets the amount of insurance. And if the insured does not die within the specified term of insurance cover, then no premiums are returned to the insured.

On the other hand when we talk about the whole life insurance it is kind of insurance policy where the insured gets the insurance cover for the entire lifetime. The insured is suppose to pay fixed premiums periodically the payment of which will continue till the time he or she survives. And the payments that are made as premium periodically, the amount is accumulated as cash value which are considered as savings. Once the insured dies, the insurance amount and the savings are paid to the beneficiary. Whole life insurance is also known as permanent life insurance.

So when have to compare in term life insurance vs whole life insurance, first thing is term life offers insurance for a specified period whereas the whole life provides the insurance cover for the lifetime. Another thing in term life insurance vs whole life insurance is that in term life the premium amount stands to be revised if one has to go extended term of insurance, but for whole life the premiums to be paid are fixed for the lifetime. The preimums to be paid in term life is smaller compared to the whole life because the risk covered in term life is for a limited period whereas in whole life there is complete risk undertaken of the lifetime. In term life insurance vs whole life insurance, one can secure loan against the cash value accumulated via whole life insurance but in term life insurance there is no such benefit availed. The premiums collected via whole life insurance are invested in various securities and the insured avails the return over the premium whereas in term life insurance no such investments are made and thereby the insured does not get any benefits of return over the investment.