Term life insurance isn’t the only option, of course. There are also different types of permanent life insurance policies, each with their own features. Here’s how term life insurance compares to other types:

Whole life insurance: A whole life policy builds cash value over time, which you can borrow against or withdraw like a savings account.

Universal life insurance: A universal life policy is similar to whole life insurance but offers more flexibility. You can adjust your premium payments and the death benefit over time. Like whole life, it builds cash value, but the cost can vary.

Variable life insurance: A variable life policy allows you to invest your premiums in different accounts like stocks and bonds. The cash value and death benefit can grow based on how well your investments do.

Policy feature	Term life insurance	Whole life insurance
Policy length	Fixed	Indefinite
Builds cash value	No	Yes
Lifelong coverage	No	Yes
Possible dividends	No	Yes
Death benefit guaranteed	Yes	Yes
Lower premiums (cost)	Yes	No