Whole vs Term Life Insurance
Life insurance agents will give you two basic plans. The plan that you choose will depend largely on your needs and wishes. For example, if you'd like to avoid any taxes that may burden your intended beneficiaries, you'll probably want a whole life insurance policy. If you want the lowest possible rate, though, you'll probably best be served by a term life insurance policy.
The Basics of Each
Whole Life Insurance is often used in estate planning and is generally for people who can afford much higher monthly premiums in exchange for the liquidity of the policy's assets (whole life policies allow you to invest, borrow, and withdraw from your policy's cash value). The downside is that premiums can often be 8-10 times higher than a term life insurance policy with equivalent coverage. The upside is that your premiums is usually flat and will not change over time.
Term Life Insurance is the least expensive form of insurance, and you'll find that it is probably the most convenient and least confusing. You can purchase various terms from 1-20 years. The most common is the annual term life insurance policy, which changes from year to year, but provides a flat payout in the event of your death. You may also purchase longer terms from 5-20 years. The longer the term, the more your monthly premium will be, but if you elect a longer term, you're also given n the benefit of a flat rate over time, as well guaranteed eligibility.