Term vs. whole life
- Term life
- Covers you for a set period, such as 10, 20 or 30 years. It usually offers the most coverage for the lowest cost, which makes it a common choice while you're paying a mortgage or raising kids.
- Whole life
- Lasts your entire life as long as premiums are paid, and builds cash value over time. It costs more than term for the same death benefit.
Compare them in more detail in our guide, Term vs. whole life insurance: choosing what fits.
How much coverage do you need?
A good starting point is to add up what your family would need if your income stopped:
- The years of income your family would need to replace
- Your mortgage and other debts
- Future costs, like your children's education
- Final expenses
When to review your life insurance
Marriage, a new baby, buying a home or starting a business are all good times to make sure your coverage still fits.
