Term life is pure insurance: it pays a death benefit if you die during the term and builds no cash value, which is why it is the most affordable option per dollar of coverage. Whole life and universal life combine insurance with a cash-value component that grows on a tax-deferred basis, can be borrowed against, and supports long-term estate and tax planning strategies. Permanent policies cost significantly more per dollar of death benefit than term, but provide lifelong protection and financial flexibility that term cannot.