Do not buy any life insurance policy unless you fully understand why you need it and how it works. Life insurance is often sold with a lot of charts, graphs and other visual aides that can be confusing. In fact, life insurance is quite simple. The basic premise is that because we all die, and, our life expectancies as a group are very predictable, there is a guaranteed claim on each policy. Different policies are offered in which you may pay now or pay later to build up the promised claim fund.
Term insurance is the least costly plan because it is pure insurance.
It is ideal for families with tight budgets who need lots of coverage but have few dollars to spend. You pay less now, more later. In the short run, whole life is the most expensive coverage. However, unlike term insurance, it is permanent coverage and usually has a fixed or even a vanishing premium. It can even become a supplemental retirement plan if the need for the insurance is reduced in later years.