Term life insurance covers you for a set number of years u2014 usually 10, 20, or 30 u2014 and is built to be the most affordable way to protect your family’s income during the years it matters most, like while you have a mortgage or kids at home.
Whole life insurance covers you for your entire life and builds cash value over time, but the premiums run significantly higher for the same death benefit.
For most young families, a 20 or 30-year term policy sized to cover a mortgage payoff and a few years of income replacement is the most efficient use of the premium dollar. Whole life makes more sense for specific estate-planning or long-term savings goals u2014 it’s worth talking through which situation actually applies to you before choosing.