Term life insurance is a type of policy that provides a fixed death benefit for a specified term (10, 20 or 30 years, for example). Once the agreed upon term ends, you have the option to renew the policy (usually at a higher rate due to increased age) or let the policy terminate. Term policies do not build cash value as you pay monthly or annual premiums, but they typically have a larger face amount for the term or the policy. If a family needs a large face amount ($500,000 or $1,000,000 or more) to cover the cost of annual living expenses, future education expenses, and any outstanding debts (mortgage(s), student loans, vehicles and credit cards, etc.) in the event of a loved one's passing, then a term policy could be an excellent choice.

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Whole life insurance is a type of policy that is more permanent in nature. You typically purchase a smaller face amount ($10,000, $25,000, $50,000, etc.), but the policy builds cash value over time, that can be borrowed against, and generally doesn't end at a fixed point in time (like a 30 year term life policy does, for example). Many whole life policies are sold as burial policies with face amounts ranging from $10,000 to $25,0000 to help cover funeral costs and other final expenses. However, some consumers opt to purchase larger single premium whole life policies to provide a death benefit and have access to the cash value inherent in the policy. 

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