Life insurance experts offer an easy guide to simplify the process for consumers buying life insurance. There are two types of life insurance: term and whole. Experts recommend that beginners always choose simple term over whole life. Whole life tends to be more expensive, and therefore policyholders with this type of coverage are often underinsured. Moreover, 50 percent of all whole life policies lapse in the first five years, says Bob Hunter, director of insurance for the Consumer Federation of America. Other consultants say whole life is more appropriate for someone who expects to keep the policy permanently.