Which type of policy is often suggested for individuals seeking to replace a term life policy?

A whole life policy is often suggested for individuals seeking to replace a term life policy because it provides lifelong coverage and includes a cash value component. Unlike term life insurance, which only provides coverage for a specified period and pays a death benefit if the insured passes away during that time, whole life insurance is designed to remain in force for the entire life of the insured, as long as premiums are paid. This means that individuals can maintain coverage without worrying about the renewal period or expiring policies that they would have with term insurance.

Additionally, the cash value aspect of a whole life policy allows policyholders to accumulate savings over time, which they can borrow against or withdraw if needed. This adds an investment element to the policy that term life does not offer, making it a more versatile option for those transitioning from term life insurance.

In contrast, universal life and variable life policies also provide permanent coverage but have different structures that include flexible premiums and investment options. While these could be alternatives, they do not have the same straightforward nature as whole life insurance, which is a common choice for individuals looking for a direct replacement for a term policy.