Permanent life insurance premiums are more expensive than term premiums because some of the money is put into a savings program. Term life insurance protects you for a defined period of time.
Term vs. Whole of Life Insurance
Choosing between term and whole life insurance policy really depends on the stage in life the buyer is in. Whole life plan would take care of the savings aspect of the person allowing him to withdraw the amount as and when he requires it.
Term life insurance is designed to provide death protection for a definite and limited period of time such as One Year Term, Five Year Term, 30 year Term, or Term to 65. If the insured dies during the term, the policy matures and the insurance company pays the face amount of the policy to the beneficiary. If the insured doesn’t die during the term, the policy expires.