Term insurance is just that-insurance for a specific term (usually for one year). At the end of the year, if the insurance is unused, the insurance company keeps the premium and renews the policy (as you age, the premium increases). Whole-life insurance combines term insurance with a savings element. Policyholders pay a higher premium, but the premium is level for the rest of their lives. A "savings account" is established with the excess premium that builds every year. A common statement is, "buy term and invest the difference." This approach works for many people who understand how to invest the difference, but most consumers will just squander the money for other uses. Whole-life insurance is a forced savings vehicle and works well for thousands of consumers who are saving for college expenses or retirement. What is your opinion on the use of whole life versus term life?