Term vs. Whole Life: Which Is Right for You?
The honest trade-offs between affordable term coverage and permanent cash-value policies.
Term insurance covers you for a set period — say 20 or 30 years — and pays out only if you die during that term. Whole life is permanent: it never expires and builds cash value, but costs far more for the same face amount.
When term wins
For most people protecting working years — covering a mortgage, raising kids, replacing income — level term delivers the most protection per dollar. Buy the coverage you need while you need it.
When permanent makes sense
Whole or universal life can suit estate-planning needs, lifelong dependents, or those who've maxed other tax-advantaged accounts and want the cash-value component. Treat the cash value as a feature, not a primary investment.
A common hybrid
"Buy term and invest the difference" works for many households: cheaper term cover plus disciplined investing elsewhere. Match the choice to your actual goals, not a sales pitch.
