WHOLE LIFE INSURANCE PLANS

Whole life insurance provides death benefits for as long as you live. The most common type of whole life insurance is "ordinary" life. With this kind type of whole life insurance, your premium rates never change. It is important to note that ordinary life premiums can be much higher than term life insurance premiums, but they are smaller than the premiums you’d eventually pay if you kept renewing term policies in your later years.
Some types of whole life policies allow you to pay premiums for shorter periods of time, such as 20 years, or until age 65. This usually results in higher premiums than with ordinary life, because payments are made during a shorter time period.
Although whole life premiums are initially higher than term premiums, whole life policies develop “cash values.” Technically speaking, these are called “non-forfeiture benefits.” That means you do not lose the cash value if you stop paying premiums.  If you are not able to continue paying for the policy, you can pay your premiums using the cash value, reduce the amount of the policy, or surrender the policy and take the cash value.  If you choose to surrender the policy, you will no longer be covered with life insurance.
You may also borrow against the cash value with a loan.  Any money owned in the form of a policy loan is deducted from the benefit paid when you die, or from the total cash value if you stop paying premiums.