Whole life insurance is usually valid for the rest of your life, as long as you continue to pay your premiums. The cost may go up as you age, but generally you can keep this policy for as long as you’d like. Some policies build up a ‘cash value’ which is the money you can borrow from at any time, or take out should you ever decide to cancel the policy. Upon passing away, any money that was taken from the cash value must be repaid.

Term life insurance is only good for the length of the term that you choose when you purchase it, which may be as few as 10 years or as many as 30. Once the policy expires, you no longer have coverage. If you want to buy a new policy you may but it will cost more since you’re now several years older than you were when you first purchased it. Term life policies are less expensive than whole life, and they don’t build up a cash value.