Which Life Insurance Should I Choose? Term vs Whole vs Universal

• Term Life Insurance is purchased for a specified span of time. Term Life insurance is usually the most affordable plan on the market, and is suitable for many healthy people, especially those with families they need to provide for, outstanding mortgages, etc. Essentially the insurance company agrees to insure you for a period of time, or term. This limits their liability to a term limit they believe you will survive. That's why term insurance is usually the cheapest life insurance, and why you can get larger death benefits. Some Life Insurance Policies have a ROP or Return Of Premium Rider. Term Life Insurance is Like Renting Insurance.
• Whole Life Insurance is considered permanent insurance, and will cover an individual until they die, as long as the policy is in force. Whole life insurance may also build up cash value. Whole Life insurance will be more expensive than term life because the insurance company assumes a risk for an individual's entire lifespan, and not a term. You can also "cash in" or borrow against the accumulated cash value, if any, on your policy. Some whole life insurance policies can be "paid up" over a period of years, and may even grow a value over the original death benefit. Whole Life Insurance is More Like Buying.

• Universal Life is a form of permanent insurance that pays a more competitive interest rate. Some people choose to use universal life as a financial vehicle. Universal Life will cost more than term insurance, but will build up cash value. This is because the "cash value" portion and "face value" portion are split out into different accounts.