Term vs Whole Life Insurance
Finance — Honest comparison to help you decide
Term Life
- ✓ 5-10x cheaper for same coverage
- ✓ Simple and transparent
- ✓ Coverage for specific period (20-30 years)
- ✓ Best for most families
- ✓ Invest the difference in index funds
VS
Whole Life
- ✓ Lifetime coverage (never expires)
- ✓ Cash value component
- ✓ Forced savings mechanism
- ✓ Estate planning tool
- ✓ Dividends from mutual companies
The Verdict
For 95% of families: Term + investing the premium difference beats Whole Life. Whole Life only makes sense for estate planning with $5M+ estates.