Life Insurance
What is the difference between term and whole life insurance?
Term life: coverage for a set period (10, 20, or 30 years), no cash value, most affordable. A $500,000 20-year term for a healthy 35-year-old costs ~$25–$35/month. Whole life: permanent coverage, builds cash value, significantly higher premiums (~$400–$600/month for same coverage). Term is right for income replacement and mortgage protection; whole life for estate planning and permanent needs.
Key Points
- Term: coverage for a set period, no cash value, most affordable
- Whole life: permanent coverage, builds cash value, significantly higher premiums
- A $500,000 20-year term for a 35-year-old: ~$25–$35/month
- A $500,000 whole life for a 35-year-old: ~$400–$600/month
- Term is right for income replacement, mortgage protection, and temporary needs
- Whole life is right for estate planning, final expense, and permanent needs