Term life insurance is a life insurance that covers only a certain period of time. Unlike whole life insurance, which lasts until the policy bearer's death, term life insurance can last for five years or even up to 30 years depending on the policy. Besides that, it is also less expensive compared to whole life insurance.

Financial advisers will mention the advantages above to people who are looking for some sort of insurance to cover potential expenses within a certain period of time. These expenses may include your children education fees, the cost of your funeral, your mortgages, or your consumer debt. The insurance provider will pay for these expenses on your behalf if you die within the agreed upon period of time. Suppose you have a daughter who has just entered high school. You can buy a term life policy that will cover your daughter's college fees just in case something happens to you while she is still in high school and whatever you're going to leave her is not enough to cover her college fees in the future.

Whole life insurance can be very expensive because you have to pay for both the premium itself and the investment portion. Most insurance companies will tell you that this premium prices are for the sake of your retirement - also often referred as 'forced savings.' However, what they do not tell you is the fact that there are other ways to save for your retirement.

On the other hand, term life policy premiums are more affordable, especially if you are below the age of 50 and still in good health. You don't have to pay extra for a 'retirement plan', not to mention that you only have to pay the premiums for the agreed upon time period. If your condition doesn't change much from when you first buy your premium, the chances of getting your insurance policy extended are pretty high. However, the premiums will progressively get more expensive as you get older, and for those that are in their sixties, it is almost impossible to get a term life policy.

It is worth nothing that term life is not always the best alternative. Whole life insurance is a better investment for higher-income families or people who are over 60 because it provides long term financial protection to the beneficiaries. If you already own a whole life policy, you have to take into account the amount of money that you have already invested throughout all these years. It is not necessarily cheaper to change your policy, and the amount of money that you will get from terminating the insurance might not be worth the risk. Not to mention that it is relatively harder to get term life insurance if you are not health condition is not up to the standards set by insurance companies.

So do consider all the factors mentioned above before deciding on which life insurance to get. Do not fall easily for insurance advertisements and always make sure that you are aware of the terms on your insurance policy.