Term Or Whole Life Insurance Which Is Better? 
`` Better '' is a completely subjective term in this case . The question is really about covering your risk and whether that risk is temporary or permanent . Term insurance is usually used to offset a temporary risk such as a mortgage or other debt that has a specific term . Whole Life , and other types of permanent insurance , are generally used to cover risks that are ongoing with no expiration date , like your income or living expenses . When working with my clients , we spend more time identifying risks and classifying them as temporary or permanent , then assigning amounts to each . The we match the product to the risk and the budget . If cash flow is n't an issue -LRB- which it usually is -RRB- , I recommend 100 % permanent insurance as it 's the most cost effective over the long run . If you live long enough , the cash value in the policy will equal or surpass the premiums paid , effectively making your net outlay zero or better . What I usually find is that people do have a budget but still want to cover themselves properly and we end up covering the temporary risk with term insurance and the permanent risk with some type of permanent insurance , like whole life . The more important question is n't which is better , but how much is needed . Set up correctly , you could start out with mostly or all term insurance and convert it to permanent as your budget allows . Another factor to consider is age and insurability . The earlier in life you buy life insurance and the healthier you are , the less it will cost . In summary , the best insurance is the insurance you buy now , when you 're younger and healthier . Find a good advisor and he/she will help you determine the amount and type which best fits your situation . Get insured first and lock in your insurability . You can always make changes in the future . 