Final answer:
People may prefer whole life insurance, even though it is more expensive than term life insurance, because whole life insurance provides coverage for the entire lifetime of the insured individual and offers a cash value component. Some people may choose whole life insurance for estate planning purposes as well.
Step-by-step explanation:
People may prefer whole life insurance, even though it is more expensive than term life insurance, because whole life insurance provides coverage for the entire lifetime of the insured individual, whereas term life insurance only provides coverage for a specific term or period of time.
Whole life insurance also offers a cash value component, which builds over time and can be borrowed against or used for other purposes, while term life insurance does not have this feature.
Additionally, some people may choose whole life insurance for estate planning purposes, as it can provide a tax-free benefit to beneficiaries upon the insured individual's death.