Term Life vs Whole Life Insurance
**Term life** covers a set period at low cost. **Whole life** lasts for life and builds cash value—but premiums are much higher. Most families need income replacement, not a hybrid investment product.
Step by step
1. Coverage amount
Often 10–15× annual income for income replacement.
2. Compare 20-year term quote
Baseline cost before whole-life illustrations.
3. Opportunity cost
Invest the premium difference in tax-advantaged accounts.
Term vs whole
Whole life can work for estate liquidity needs; term fits most mortgage/parent phases.
- Term: Cheap; expires; pure protection.
- Whole: Permanent; cash value; high fees.
Use our calculators
Common mistakes
- Under-insuring while funding cash value
- Canceling term early without replacement coverage
FAQ
Is whole life a good investment?
Returns are often below diversified markets after fees—buy term, invest the rest is common advice.