These are the two basic types of life insurance policies.
Whole life insurance provides lifetime coverage, pays out a death benefit upon the death of the insured person, and builds up cash value inside the policy from which a loan may be taken.
However, whole life insurance usually costs up to 5-10 times more than the same amount of term life insurance.
Term life insurance is temporary coverage lasting up to 30 years usually.
You may be able to choose a policy term (duration of coverage) lasting for 10, 15, 20, 25, 30, 35 or 40 years.
The shorter your policy term, the lower your cost of life insurance annually.
Term life pays out a death benefit if the insured dies during the policy term. However, it does not build any cash value inside the policy.
If you outlive the policy term, the life insurance coverage ends.
Learn more about whole life insurance vs. term life insurance.