Term life insurance covers you for a set period, such as 20 or 30 years, and pays a death benefit only if you die during that time. Whole life insurance lasts your entire life, includes a cash value component, and costs considerably more.
Quick comparison
| Feature | Term life | Whole life |
|---|---|---|
| Coverage length | Fixed period | Lifetime |
| Cost | Lower premiums | Higher premiums |
| Cash value | None | Builds over time |
| Best for | Income replacement during working years | Lifelong needs and estate planning |
Which should you choose?
Many families choose term coverage for the years when others depend on their income, because it delivers the most protection per dollar. Whole life can make sense for lifelong dependents or estate needs. Compare insurers in best life insurance.