life comparison
Term vs. Whole Life Insurance
Term covers a fixed window at the lowest cost. Whole life is permanent coverage with cash value at 5-10x the price. The right choice depends on whether you need protection or a savings vehicle.
Term Life
$180–$600/yr for $500k
Best for: Income replacement during working years
Pros
- 10-12x cheaper than whole
- Aligns with mortgage/dependents window
- Simple to compare and buy
Cons
- No cash value
- Expires
- Premium re-prices after term
Whole Life
$2,400–$6,000/yr for $250k
Best for: Estate planning, high earners with maxed retirement accounts
Pros
- Lifetime coverage
- Guaranteed cash value growth
- Tax-deferred
Cons
- 10x cost of term
- Slow cash value first 10 yrs
- Hard to compare
Our recommendation
For 90% of households: buy 20–30 year term and invest the difference. Whole life makes sense only after 401(k) + IRA + HSA are fully maxed.
Frequently asked
Is term life enough if I have kids?
Yes — choose a term length that covers their dependency window (typically 20–25 years) and a benefit of 10–15x income.
Can I convert term to whole later?
Most term policies offer conversion privileges. Confirm before buying — useful if you become uninsurable later.