Term Or Whole Life Insurance Which Is Better? 
The BEST life insurance product is the one that meets your needs . Therefore , you must ask yourself ; What is the goal ??? Term and Permanent insurance are two different products for two completely different needs . Term insurance is a product for just that , a fixed term , with either a level premium for the selected term or an increase annual payment if you were to choose renewable term . Since the contract isfor a fixed period of time , premiums are typically a portion of what the same coverage would be with a Permanent product as there are no cash accumulation or surrender features , making it affordable for those who need it . Regardless , term insurance is great for those with a need for coverage in the event of a loss of life , for a fixed term , i.e. the income or performance of the insured will be relied on by others . Additionally , term insurance is a great way for families with a limited income , to protect and provide for the family and young children in the event of the loss of the family breadwinner or equally important , the caregiver -LRB- many `` breadwinners '' undervalue the benefit provided by the stay-at-home spouse and over look childcare costs ! -RRB- which will help with living and education expenses for the surviving family . In the future , these young families can always re-analyze goals and needs and when their income allows , and convert to a permanent product . Term is also very useful for businesses to protect themselves against the loss of production and revenue in the event of a death of a key employee . This type of insurance planning called Key-man coverage , is cost affordable when using term insurance . Lastly , many of the attractive riders that are issued with permanent life policies can also be issued with term policies . Permanent insurance is a product with virtually infinite uses depending on your needs . Permanent life insurance products are just that , permanent for the life of the insured , so long as the owner has paid a sufficient amount of premium to maintain the coverage . In comparison to term , permanent life insurance is more expensive in order to account for the cost of insurance in later years of the insureds life . However , there are multiple advantages to buying permanent coverage as soon as you can afford it when you are younger . Aside from a lower level premium amount to carry the policy to maturity , more time will allow for a larger accumulation of cash value in the policy . This cash value , accumulating at a tax-deferred rate that beats current treasuries , can also be accessed through policy loans and withdrawals in the event of emergency cash needs , can be used as collateral for business or personal loans and can also be used to support you during retirement , assuming that the need for coverage has been reduced . There are two main forms of permanent coverage , Whole Life products and Universal Life products , each with their own attractive features including dividends , increasing death benefit , flexible premiums and crediting rates indexed to stock market performances . Before making the decision to purchase either , be sure to sit down for a -LSB- typically free -RSB- consultation with a licensed life insurance agent who will help you identify both your short term and longer term needs and goals . Together , you should be able to put together an effective plan that will blend affordability and proper protection to meet your life insurance needs . 