Permanent life insurance with a death benefit and a cash value component.
Whole life insurance is permanent life insurance (lasting your entire life) combining a death benefit with a cash value component that builds over time. Premiums are higher than term insurance but remain fixed for life. Part of each premium goes toward the death benefit; part goes into a cash value account earning historically reliable interest. You can borrow against the cash value, surrender the policy for cash, or use it to pay premiums. Whole life offers permanence (never expires), tax-deferred cash value growth, and historically reliable returns. However, it's significantly more expensive than term insurance and often has poor returns compared to investing separately. For most people, buying term insurance and investing the premium difference in index funds generates more wealth. Whole life is most appropriate for high-net-worth individuals with estate planning needs or lifelong income replacement needs.