Whole life pays a death benefit that does not expire at the end of a term, as long as you pay the premium. Part of each premium buys the guarantee; part builds cash value you can borrow against. Dividends, when paid, are not guaranteed.
It costs more per dollar of death benefit than term. That is the point: you are buying permanence and a savings-like cash value, not just a cheap lease. People use it for estate liquidity, for special-needs planning, and as the chassis for infinite banking designs.
If you were shown Indexed Universal Life instead, read Indexed Universal Life (IUL) before you choose. They are both permanent. They are not interchangeable.
Educational only. Products, features, and availability vary by carrier and by state. This is not an offer of insurance, tax advice, or a recommendation of any specific policy. Licensed in AL, AZ, AR, CO, ID, LA, MS, MT, NC, NM, SC, TN, UT, WV, WY. Iron Tusk Insurance Group, LLC. National Producer Number #22311194.
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We design to guarantees first, then talk about non-guaranteed dividends.