Term Life Insurance vs Whole Life

We are thinking of getting a  life insurance this January.  Life Insurance is a must especially for a family like ours with two very young children.  We are still unsure if we’ll get a term life insurance or a whole life insurance.  A term life insurance is much cheaper but has some disadvantages.  For one, it doesn’t have any cash value.  It will expire after a certain period if not used.  On the other hand, it serves its purpose.  If something happens to me it will ensure that my wife and children will receive a small amount of money to help them back on their feet.

Whole life insurance is more expensive than term life but you are covered for life.  You can also get some cash back if ever you need emergency money in the future.  If you cancel the policy at one point, you can still get some cash out of it.

Right now, we’re leaning towards whole life insurance.  If we can afford the premiums then we’ll surely go for it, otherwise we’ll just settle for the term life.  This is one of the most important insurance and every family must have at least one.