Term vs Whole Life Insurance Comparison
Side-by-side cost and benefit comparison of term life vs whole life insurance over 30 years. See the math on when whole life might (or might not) be worth it.
Frequently asked questions
When is whole life better than term?
Whole life makes sense in three specific cases: (1) You need permanent coverage — for example, you have a child with special needs who'll depend on you forever. (2) You've maxed out all tax-advantaged retirement accounts (401k, IRA, HSA) and are looking for more tax-advantaged savings. (3) You have an estate tax problem (net worth over $13.61M as of 2026) and need insurance to pay estate taxes. For everyone else, term life is better.
Is whole life a scam?
No, but it's a product that's very easy to sell badly. Many agents make big commissions on whole life (50-100% of first year's premium) and push it on people who don't need it. The math doesn't work out for most young families who'd be better off with cheap term and investing the rest.
What if I buy term and die after 30 years?
Then your coverage expires and your family gets nothing. But the idea is that by age 60, you should have enough invested (retirement accounts, home equity, etc.) that you don't need life insurance anymore. Life insurance is meant to replace income during your working years, not be a permanent expense.