Term insurance

Your starting premiums are lower than permanent insurance

Your premiums go up if you buy or renew when you are older or convert later to permanent insurance

10-year term:

$82 to $90

20-year term:

$168 to $185

You can use it to cover short-term needs, such as mortgages

You cannot use it to build up savings, and it does not protect your family if you outlive the term

You may be able to convert to permanent insurance (up to a certain age)

You may be able to renew without a medical exam, but some policies require an exam to get a lower premium

You may be able to buy by phone, on the Internet, by mail, or through a group or association

You may not get what you think you are buying if you buy directly, without advice from an expert

Permanent  Whole Life insurance

Your premiums and death benefit don’t change in most cases. With some plans, you can pay higher premiums for a limited time

Your starting premiums are higher than you pay for term life insurance

$450 to $495 and up (premium stays the same)

You are covered for life

You may not need the same coverage as your personal or family situation changes

You may be able to get some of the death benefit in advance if you become terminally ill

The company may be able to cancel your policy if your health changes

If you opt to pay higher premiums and build cash value, you can grow your savings without paying tax on the growth until later. You may also use the cash value to pay your premiums

You don’t get to choose how your money is invested

You can use the cash value for investment, retirement, and estate planning, and you have some choices about how you invest your money

You could save your money in some other investment, without having to buy insurance

Universal Life insurance

You can change the amount of the premiums if you want a bigger or smaller death benefit. You can even pay for some years and then stop, if you have enough cash value

Your starting premiums are higher than you pay for term life insurance

$450 to $495 (with no cash savings)

You are covered for life

As your personal and family situation changes, you may not need the same coverage

You may be able to get some of the death benefit in advance if you become terminally ill

The company can cancel your policy if your health changes

If you opt to pay higher premiums and build cash value, you can grow your savings without paying tax on the growth until later. You may also use the cash value to pay your premiums

There is no guarantee on how fast your money will grow. You can lose some of the cash value if your investments lose money

You can use the cash value for investment, retirement, and estate planning, and you have some choices about how you invest your money

You could save your money in some other investment, without having to buy insurance