I'm 44 now and have no savings, investments, or life insurance. I know there are policies that may be used toward savings but I don't know the difference between term and whole life policies.
Answers | 2
Let's start at the beginning. Do you need life insurance coverage to protect the income needs of someone who you are supporting? If yes, then the best way to get inexpensive life insurance coverage is term coverage. Term life insurance will provide you a dollar amount of coverage for a set term of years like 20 years. This works well to protect minor children until they are on their own for example. After the term, the coverage expires.
Whole life policies combine term coverage with an investment component which increases the premium price usually substantially. It would likely be better to invest the additional money in an investment vehicle such as an IRA or taxable account and not through an insurance vehicle. You are doing the right thing to start now to supplement your social security income in retirement. Good luck!