Term vs. Whole Life Insurance: A Plain-English Comparison
March 5, 2025 · 6 min read
Term life: the math
Term life is pure death benefit. A healthy 35-year-old can buy $500,000 of 20-year term for $20–$30 per month. If you outlive the term, the policy ends.
Whole life: insurance + savings
Whole life costs 10–15× more for the same coverage but lasts your lifetime and builds tax-deferred cash value.
When term makes sense
You need coverage to replace income during working years (paying off mortgage, raising kids).
When whole life makes sense
Estate planning, lifelong dependents (special needs), or a tax-advantaged savings vehicle after maxing out retirement accounts.