Term vs Life Coverage

Term vs whole life:

Term life is for a temporary period of time. This term is usually around 10, 20, or 30 years. The premium payments gradually increase after a certain period. Term life policies pay out a death benefit to the insured's beneficiary if they pass away before the term of the policy is over. At the end of the term, the policy may be converted to a whole life policy. 

Term Life insurance is nice for people who need temporary coverage. For instance, while you have a mortgage or while your children are still young and reliant on you. 

Whole life insurance is coverage for the entirety of the insured's whole life usually until age 100 or 120. The premium tends to be higher than term life insurance policies.  Whole life policies also have potential for interest-earnings or dividends based on market-indexes or investment account growth. This kind of policy builds cash value, which the policy owner may borrow against or pay policy premiums with.

Whole life insurance is nice for people who want coverage that won't expire for their entire lives. If you have long-term financial responsibilities, dependents, are a business owner, high net worth, you've maxed out your retirement, or you want guaranteed returns and fixed premiums then you will want a whole- life policy.