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About Term Life Insurance

Term life insurance as the name suggests pays a death benefit during a specified term of coverage (10-30 years). Term life is the cheapest form of life insurance for most young and middle-aged people the premiums on term policies are relevantly low since the likelihood that they will die during the term of the policy is small.
Term insurance is popular for many because it can cover you during your earning years, if you are a young parent with small children and a home mortgage.

About Whole Life Insurance

Whole life pays a death benefit if you die up to age 100. Then it automatically pays out the face value, because statisitcally, you'd be dead. For most people, whole of life insurance provides coverage that may go unneeded.

Whole life insurance also have an investment component where part of your premiums go into an investment fund which grows at either a fixed (whole) or variable (universal, variable or variable universal) rate, depending on the stock or bond markets. Growth in your cash value or accumualtion account could reduce premiums you pay in the future if the rate ius high enough. Also whole life can build a surrender value - an amount you can borrow against or cash in without having to die. However, the surrender value can generally be less than the amount you've paid in the form of premiums and you could surrender your policy if you overwithdrawl.
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