What Life Insurance Is Best? 
The short answer is : it depends on the need . Term insurance is ideal for short term protection -LRB- e.g. paying off a mortgage or providing income in the event of an early or unexpected death -RRB- . Permanent insurance is ideal for long-term safety net protection , estate planning , retirement planning . Many people buy both types of coverage - some permanent to protect against the future after other debts are paid off and some term to cover time-limited debts -LRB- such as a mortgage , car , etc. -RRB- . Term insurance provides more bang-for-your-buck up front , but it 's only for a short period . Permanent insurance allows you to pay the same premium for the rest of your life without having to worry about it going up in the future . A brief description of the two types of coverage are as follows : Term life insurance guarantees the premiums will remain fixed for a specific number of years -LRB- 10 , 15 , 20 , 25 , or 30 years -RRB- . Once the initial period of premium guarantee expires , the program changes to either annual renewable term insurance with premiums increasing each year -LRB- based on age -RRB- or the premiums remain the same and the death benefit decreases each year -LRB- this structure can be seen on term insurance that is featured on a universal life chassis . There is no cash value build-up in term insurance . Permanent life insurance is designed to provide coverage for the rest of the insured 's life and build cash value . Under a guaranteed universal life -LRB- GUL -RRB- program , the policy can be structured to keep premiums level and provide coverage up to a specified age -LRB- e.g. to age 90 , to age 100 , or even up to age 121 -RRB- under the `` dial down '' process . Whole life features level premiums and death benefits and builds cash value at a faster rate -LRB- participating WL policies may pay dividends that can be used to increase the death benefit or decrease the premiums over time - non-participating WL policies do not feature this ability -RRB- - the trade off between this and guaranteed universal life is that to increase the cash value faster , the premiums will generally be substantially higher . For both GUL and WL , the carrier takes back the cash value upon the death of the insured , and pays out the death benefit proceeds . Therefore , GUL policies allow you to maximize your death benefit and minimize your premium dollars that you pay for the coverage . I highly recommend consulting with an independent insurance agent/broker to determine what policy benefit structure will best serve your needs , review quotes , and help you through the application and underwriting processes . Please feel free to contact me for help and if you have any other questions . Thanks very much . 