Choose a term that covers the years you’ll be paying the bills and want life insurance in case you die. Buy an amount your family would need if you were no longer there to provide for them. The payout could replace your income and help your family pay for services you perform now, such as child care.

Ideally, your need for life insurance will end around the time the term life policy expires: Your kids will be on their own, you’ll have paid off your house and you’ll have plenty of money in savings to serve as a financial safety net. Whole Life Insurance provides lifelong coverage and includes an investment component known as the policy’s cash value. The cash value grows slowly in a tax-deferred account, meaning you won’t pay taxes on its gains while they’re accumulating. You can borrow money against the account or surrender the policy for cash. But if you don’t repay policy loans with interest, you’ll reduce your death benefit, and if you surrender the policy, you’ll no longer have coverage.​
Although it’s more complicated than term life insurance, whole life is the most straightforward form of permanent life insurance. Here’s why:
● The premium remains the same for as long as you live.

● The death benefit is guaranteed.

● The cash value account grows at a guaranteed rate.​