Term Life vs. Whole Life Insurance
Many term policies are renewable, which means they are renewed without health report or physical, until a certain age. Because there is an increased risk of death at a higher age, renewal premiums will also be higher. With most term policies you can convert to a different type of policy, which means they you can exchange a term life policy for another type, such as whole life.
Whole life insurance, also called permanent life or straight life, is a protection policy that can be kept as long as you are alive. The premiums don't increase as you grow older, like Term Life policies do. Whole Life averages the cost of the policy over your estimated life span.
Whole life insurance has a "cash value" or the sum that grows over the years and is taxes deferrable. If you chose to cancel the policy, you will receive a lump sum of money, based off the policies coverage. Many people use the accumulated cash value to supplement retirement income. This type of life insurance plays an important role in financial planning for many families.