Term vs whole life: which one actually fits you?

When people ask me about life insurance, the first fork in the road is almost always term versus whole life. Term life insurance covers you for a fixed period, say 20 years, and pays out only if you pass away during that term. Because there is no savings component, premiums are much lower: a healthy 30-year-old can often get SGD 1,000,000 of cover for the price of a few coffees a month. If your goal is simply to protect your family while the mortgage is outstanding and the children are young, term cover is usually the efficient answer. Whole life insurance covers you for life and builds cash value over time. Premiums are significantly higher for the same sum assured, but part of what you pay accumulates and can be surrendered or borrowed against later. Some plans add a multiplier that boosts coverage until a certain age. A simple rule of thumb I share with clients: buy insurance for protection first, and treat investment-linked features as a separate decision. Work out the income your family would need if you were not around, cover that gap with the most cost-effective instrument, and only then consider whether a permanent policy suits your estate or legacy goals. Every situation is different, so treat this as education rather than a recommendation, and speak to a licensed advisor about your own numbers.