Whole Life Insurance Whole Life insurance can provide a cash value for the policyholder during his lifetime, or provide a lump sum plus dividends to the policyholder's beneficiary upon his death. Premiums are usually paid to the insurer at regular intervals, and are then invested by the insurer to generate dividends for the policy, hence performing savings as well as protection function . Term Life insurance Term Life insurance pays a lump sum only upon the policyholder's death and does not provide dividends. They are of a fixed duration. If no claim is made, the policy will cease after this time. The benefits provided by a term life protection usually remain constant throughout the duration of the policy. Mortgage Insurance Mortgage Insurance is a kind of Term Insurance. In this case the protection benefits will gradually decrease as the amount of the loan decreases. It covers the possibility of non-repayment of mortgage loans.