Life insurance is purchased to supplement the future financial security of the beneficiary. There are two types available: whole life and term life. Recognizing the differences allows the purchaser to achieve better insurance planning. Term Life Insurance Term life policies are clearly defined, and thus easier for DIY insurance planning. A definite payment amount guarantees that a specified amount will be paid to the beneficiaries. These policies typically have a 20-to-30-year term with affordable premiums. Some companies include predetermined increases in payments at specific intervals throughout the life of the policy. Once the term of the policy is exhausted, a renewal is required, and the costs increase substantially due to age and physical conditions. Whole Life Insurance Whole life insurance policies can be difficult to understand at first because there are actually two components: death benefits and a savings account. When the policy is first purchased, a death benef...