If you're straining to buy enough insurance to accomplish that goal, then term is what you should buy. Dollar for dollar, term gives you the most protection for your money. Beyond that important truth, the arguments for term are the arguments against whole life. Borrowing keeps the policy in force, but any unpaid loan balance will be deducted from the face amount if you die. To restore the full face amount of the policy, you'll have to repay the loan, plus interest.
Some companies charge variable rates so that the interest they collect reflects the current market.
Others reduce dividends to reflect the amount of the cash value encumbered by the policyholder's loan, an approach called direct recognition. Under direct recognition, in effect, the more you borrow the less your policy earns. Either of these approaches can make policy loans more expensive than they appear. In any case, you can leave your options open by starting with a term policy that you can convert to whole-life coverage. The case for whole life One of the strongest arguments for whole life is that the cash value in the policy builds up tax free, which substantially boosts the compounding power of your earnings.