Term life covers a fixed period — often 10, 20 or 30 years — and pays out only if you pass away during that window. It's typically the most affordable way to get a large death benefit while you have dependents or a mortgage.

Whole life (a form of permanent insurance) doesn't expire as long as premiums are paid, and a portion of each premium can build cash value you may borrow against. That flexibility comes at a substantially higher price for the same death benefit.

A common approach is to buy enough term coverage to protect your highest-need years, and to consider permanent coverage only for specific long-term goals. There's no universally correct answer — only the one that fits your budget and plans.