Term insurance is perfect when your needs are temporary and when you need protection until a debt, such as a mortgage or a business or education loan is paid off. Generally speaking, if your need for protection lasts ten years or less, or will cease entirely before age 60, term insurance is an intelligent buy.
Term insurance is normally the better buy for the younger age groups and for the short run.
It makes the ideal choice when you're young, just starting out, and on a strict budget, since it allows you to buy the full amount of coverage you need at an affordable price. Permanent insurance, on the other hand, provides permanent protection, coverage for your entire life. In the early years, therefore, premiums are higher than the amount required to pay only for pure death benefit protection. Like Permanent Life Insurance, this kind of insurance is permanent, offering lifetime protection and cash value accumulation. Unlike whole life, however, universal-type policies feature an adjustable death benefit and flexible premiums.