What is the difference between a "whole" and a "term" life insurance policy? "Whole" refers to the total life span-no matter how long. This is generally a much more expensive type of policy unless you buy it for your child when they are very small. The amount of insurance coverage that you need also decreases after a certain point in time, so it is not always practical to carry this type of insurance. Term life insurance is for a set period of time like 10, 20, or 30 years. It is less expensive and therefore more practical for most.