Whole-life insurance? Term-life insurance? or
Universal-life insurance? 
The clear answer is.....Some of each.

Here is a brief summary of each: 
(More information can be found at the
end of this article).

A Whole-life insurance policy would cover the cost of
your final expenses.  However, if you want more
control over your premiums, you may want to
consider a Universal-life policy. In addition, a
Term-life policy would cover expenses and bills
you've already acquired. (Such as mortgage,
credit card debts, outstanding loans, etc.).

Quick example:  You're a married man, 35 years old,
with two children. Your income is around $40,000 per
year and you have a $40,000 mortgage. 
In addition, you have $15,000 in credit card debts,
$10,000 in outstanding loans. And you can surely
count on spending a minimum of $100,000 if you
plan on sending those two kids off to college some day.

First, let’s look at Whole-life, or Universal-life insurance
plan. $40,000 per year income divided by 0.08 comes
to $500,000 in Permanent insurance. 
(Permanent =Whole or Universal). 
THIS IS INSURANCE THAT YOU KEEP
FOR YOUR LIFETIME!  
$500,000 in permanent insurance = $250,000 in
Whole-life plus $250,000 in Universal-life.

By dividing this $500,000, you obtain more flexibility
with your policy.
(We'll explain this in GREATER detail, keep reading!)

First let’s look at Term-life.  Let’s add up our bills listed previously.  
$40,000  mortgage $15,000  credit card debts  $10,000  outstanding loans  $100,000  college for a total of $165,000

Now, as an example.  For this $165,000 we purchased a 20 year term policy. 
(I know, some of you may be confused. 
You're asking "why buy both permanent
and term?) But stick with me.
 
Let’s go back to that 35 year old individual.  But lets say that this individual should suddenly die early, at the age of 45. That $165,000 'Term' policy would then pay bills, mortgage, outstanding loans, etc. 

The $500,000 'Permanent' policy can then be cashed out by the surviving spouse/beneficiary. Think about it.  If this person dies at the age of only 45, it is estimated that the surviving spouse will live another 40 years. If we then break that $500,000 down over a 40 year period, that only comes to $12,500 per year. That doesn't sound like a whole lot to live on does it? 

Let’s now say that this same insured person lives to be 70 years old.  That 20 year Term-life policy would have expired and most of those debts paid off.  This would be the time to cash in your Universal half of your Permanent policy.  This means that the insured would still be left with $250,000 of Whole-life, leaving spouse/beneficiary ample benefits.

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