2. False is correct. Because comparing 5-year renewable term to whole life is an “apples to oranges” kind of comparison; since each product is designed to meet different needs, you can’t tell which is the better buy based on the premium for each one. The term policy, which pays the face value if you die during the term, IS cheaper when you're young but the premiums will increase every five years and so can cost considerably more if you continue to need it 20 or more years after you buy it. Term insurance is best for a time-related need, such as paying off a mortgage or college expenses if you die prematurely. However, you may want to buy a term policy that can be converted to a permanent policy without a medical exam.