Life insurance provides you and your family a source of income in the event of critical illness, total and permanent disability, or death. Certain forms of life insurance can also supply you with a retirement income or act as a financial back-up in emergencies, protecting you against healthcare costs.

While there are many types of life insurance, we’ll cover the basic two here: term insurance, and whole life insurance.

What’s the difference between term and whole life insurance? 

Term insurance is pretty straightforward: you pay for coverage for a set period of time. It pays the sum insured only if you die or become totally and permanently disabled (if this benefit is provided) during the period. Term insurance is typically cheaper as it doesn’t have a savings element – there’s no value if you cash in.