Whole (Permanent) life insurance is coverage for your entire life. Under this type of policy, your coverage will never expire and will never need to be renewed. This is, of course, assuming the premiums are paid in a timely manner. Whole Life Insurance cover is for the whole of your life. Unlike term insurance, which only pays out if you die during the policy term.The amount, for which you are insured, also known as the death benefit, will be paid to your beneficiaries at the time of your death. Once known as permanent life insurance, these policies are now more often called cash-value insurance. The term "cash-value" refers to an additional savings feature that increases the value of a policy.
Whole Life insurance is more expensive because it is certain that the life company will eventually have to pay the sum insured. Monthly premiums are invested by the insurer into a life fund. The terms and conditions of Whole of Life Insurance policies vary, so make sure you understand the scope of the cover being offered before committing yourself.