Significance

• It is important to compare different types of life insurance so that you can make an informed purchasing decision based upon your age, health, budget and long-term family needs.
  
  

Features

• Whole life insurance is a permanent type of insurance that remains effective until your death, even after you have paid all of the premiums. Term life insurance is a temporary type of insurance offered in 10, 20 or 30 year "terms." A term policy remains in effect throughout the term that you have purchased.
  
  

Function

• At the time of your death, both insurance types pay a death benefit to your beneficiaries.
  
  

Benefits

• According to AXA-equitable.com, whole life-insurance premiums accumulate cash value that you can borrow against. The premiums do not increase as you get older, nor are they affected as your health deteriorates. With term life insurance, you have the option to specify a period of time that you need the coverage. Term life premiums tend to be lower so you can structure them to fit into your budget.
  
  

Considerations

• According to Spectrum Insurance Group, there is a direct correlation between age, health and the premium costs of a term life-insurance policy. As your health deteriorates with age, your term life-insurance premium amount will increase. Since term life insurance does not accrue cash value, you cannot borrow against your policy and your beneficiaries will only receive a cash benefit if you die within your term period.