Term Life + Invest vs Whole Life
**Term life** is cheap pure protection—invest the premium savings in diversified funds. **Whole life** bundles insurance with a cash value account—higher cost, slower growth, complex surrender rules.
Step by step
1. Price 20-year term
Match death benefit face amount apples-to-apples.
2. Invest the delta
Whole premium minus term premium compounded at conservative return.
3. Revisit coverage
Term expires—plan decreasing need as mortgage and kids age.
Term + invest vs whole life
Buy term and invest the rest is common advice for young families.
- Term + invest: Lower cost; market growth; coverage ends at term.
- Whole life: Permanent coverage; cash value; high fees and complexity.
Use our calculators
Common mistakes
- Canceling term early without other coverage
- Borrowing against whole life at high loan rates
FAQ
When does whole life make sense?
Estate liquidity or guaranteed insurability niches—run numbers with CPA.