To help in your decision, here is a summary of the most common types of life insurance and benefits:

TERM LIFE 

Term Life Insurance provides protection for a specified "time period" or to a certain age. Term life is "pure" insurance, meaning it's strictly a death benefit with no frills. With Term Life coverage, normally there isn't a cash value--meaning if you outlive your time period, your protection ends with no cash payback.

Term Life is the least expensive option. The cost is generally less than other types of life insurance, especially for people under age 50. Term Life may be the best choice if you're on a tight budget or if your insurance needs are temporary--for example, you only need it until your youngest child leaves home.

Some Term plans are convertible, which means you can change to a Whole Life policy at some later date, regardless of your health.

WHOLE LIFE

Whole Life Insurance is "permanent" insurance because it protects as long as you pay the premiums. Whole Life differs from Term because it builds cash values. You can borrow from the cash values, but this reduces benefits paid at your death if the loan is not repaid in full.

Whole Life protection is typically more expensive than Term Life coverage. However, premiums never change, even as you grow older.

Whole Life is your best option if you want to earn steady returns on your cash value, or want part of your premium invested in a savings or investment fund. Whole Life may also be a better choice if you expect to pay taxes on a large estate, need to support a handicapped child, or want to leave money to your heirs.