Life Insurance for Young Family?

My husband and I are in out mid 20's with a little boy.

We want to buy life insurance due to having a child, just in case anything was ever to happen.

We cant figure out if Whole or Term insurance is the best choice for our age.

I like to idea of the whole life due to it building cash value over a long term period and after 20 years or so of paying it would be nice to borrow money if need for our son's college or a emergency, and we currently have a Gerber college fund for our son.

The only thing that scares me of the whole life is the fees. Term I understand is for a certain time 20, 30 years then it expires. I don't like the idea of paying insurance for 30 years and having not cash value.

Our debt is very low so there would not be tons to pay off or be concerned if something happened. I'm more worried about just making sure my child will be alright if something happened.

At your age, term life insurance costs much less than whole life insurance.

If you buy a term life policy and put the rest of the money that whole life would cost into the bank, and keep doing that for 20 years, then will you have enough in the bank to pay (not borrow) the money for college? Or, you could invest that money in a mutual fund to grow over time and provide money for your child's college tuition.

With a whole life plan you may be able to borrow money from the policy in the future, but you have to pay back that money plus interest into the life insurance policy. It is a loan from the policy.

How is paying a lot of money to have a little cash value in an insurance policy better than paying less money and having more cash value in a bank account?

And, if you do pass away before your term life plan expires, your family would have much more in proceeds that if you had bought whole life insurance.

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