The two big families of life insurance solve different problems. Most people are best served by term — but not everyone. Here's how to tell.
Side by side
| Term Life | Permanent (Whole/UL) | |
|---|---|---|
| Duration | 10–40 years | Lifetime |
| Cost | Low | 5–15× higher |
| Cash value | No | Yes, builds over time |
| Best for | Income, mortgage, raising kids | Lifelong needs, estate planning |
Choose term if…
- You want maximum coverage for the lowest cost.
- Your big needs are temporary — a mortgage, young kids, replacing income.
- You'd rather invest the difference elsewhere.
Consider permanent if…
- You have a lifelong dependent (e.g. a child with special needs).
- You're focused on estate planning or leaving a guaranteed legacy.
- You've maxed other tax-advantaged accounts and want cash-value growth.
For most families, term life delivers the protection that matters most, at a price that leaves room in the budget. "Buy term and invest the difference" is popular advice for a reason.
A middle path
Many term policies include a conversion option — the right to convert to permanent later without a new medical exam. That lets you start affordable now and keep your options open.