Which kind of policy is fitful for you, whole life insurance or term life insurance ? The answer relies on several factors, which include:

Your demands. If you want coverage just until your children will graduate from college, in this case, you would be better with a term life policy.

Cash-value insurance is better fitful for long term demands, like planning estate taxes or supplying lifetime security for the spouse. Some of the long term policies could not be renewed after age 70 or 80 years old and may become expansive to renew as you are close to that age.

The expanse. If term life insurance is more fitful for your budget and you need life time coverage, think about a term life policy that could be transferred to a whole life policy. You could convert the policy any time your cash flow or needs dictate. Also, you can buy a combination of whole life and term life insurance and convert into whole life insurance little by little.

Your Investment and Saving Goals. Whole life insurance would be a decent long term investment tool, especially since the cash value possesses the potential to produce tax-deferred. If you do not need the insurance any more,and want some extra cashes, you may surrender the policy and try to collect some accumulated cash value. Be certain to discuss the tax results with your tax adviser in advance.

As an alternative, you can purchase term life insurance plan and invest the amount that you save on premiums. Compare the returns with your expectation, and remember bringing taxes into considerations if you want to select taxable investments.