Whole Life Insurance Calculator

Whole Life vs Term + Invest

The classic debate: whole life provides permanent coverage plus a cash value that grows tax-deferred. Term insurance is 5-10x cheaper with no cash value. The "buy term and invest the difference" strategy puts the premium savings into index funds. Historically, investing the difference produces a larger nest egg than whole life cash value — but whole life provides guarantees that markets do not.

When Whole Life Makes Sense

Whole life is appropriate for: estate planning (irrevocable life insurance trusts), high-income earners who have maxed out all other tax-advantaged accounts, and people who need permanent coverage (disabled dependents, business succession). For most families, term insurance at 10-20x income for 20-30 years covers the critical need at 1/5th the cost.