Figuring out which life insurance policy is best for you depends on your financial goals, life stage and lifestyle. The three types of life insurance — term, whole and universal — offer various features and options that are designed to meet different needs and budgets, depending on your personal situation and long-term financial goals. Some variables to consider are the need for permanent or temporary coverage, the choice between fixed or variable premiums, the option to change the death benefit amount in the future, and the ability to build cash value and borrow against the policy over time.