Whole Life - It is more expensive and creates a higher sales commission. It's sales appeal is that it builds cash value while offering insurance protection. But there is rarely any cash value until after 2-3 years. And also, many more years are required to see a break-even point. No other savings program one faces this situation. No other program has a negative cash value for years to come. And since this cash value is supposedly your money and you borrow it, how come you have to pay it back with interest? All this does not make a very good option.

Term Insurance - has limitations as suggested above. It builds no cash value but it is the least expensive form of insurance available. There are two types of term insurance:

Straight Term - its exists as is and for the full amount as long as you make payments. It does not increase or decrease the amount of coverage.

Decreasing Term - again as its name implies, decreases as the length of time goes on. This type of insurance is most often used in association of a mortgage or car loan. But here is a major caution. You must insure the decrease does not exceed the payoff. For example. Decreasing term insurance for a 30-year mortgage will not keep pace with the mortgage itself. If the decreasing term insurance decreases over 30 years it is a straight-line decrease. A mortgage, however, is not straight line because the majority of the interest is in the beginning. Possibly 75% of the mortgage will still be owed when 2/3 of the decreasing term insurance has passed.