Which life insurance is right for you?
Term vs. whole life, made simple.
Same coverage, wildly different price. Here's the real difference between the two — and a simple way to tell which one actually fits your life.
By PolicyAudit · Reviewed by Owen Bohnenblust, licensed insurance agent (NPN 21020375) · Published · Updated
How much more does whole life cost than term?
$500,000 in coverage for a healthy 40-year-old · illustrative monthly rates
| Term life (20-yr) | Whole life | |
|---|---|---|
| Typical monthly cost | ~$34–$59 | ~$250–$340 |
| How long it lasts | A set term (10–30 yrs) | Your entire life |
| Builds cash value | No | Yes, slowly |
| Best for | Income, mortgage, kids' years at home | Lifelong needs, estate planning |
Figures are illustrative and depend on age, health, and carrier. Whole life runs roughly 8–10× the cost of comparable term coverage.
Which one should you pick?
Choose term if…
Consider whole life if…
Already have a policy?
Common questions
Is term or whole life insurance better?
Neither is universally better — it depends on your goal. Term is better for affordable, temporary protection (most people). Whole life is better when you need permanent coverage that lasts your whole life.
What happens when a term policy expires?
Coverage ends. You can let it lapse, buy a new policy (at a higher rate because you're older), or convert it to permanent coverage if your policy allows it. Many people buy term to cover the years they most need protection, then self-insure afterward.
Can I convert term life to whole life later?
Often yes. Many term policies include a conversion option that lets you switch to permanent coverage without a new medical exam, usually within a set window. It's worth checking whether your policy has one.
Is whole life insurance a good investment?
For most people, it's not the best place to grow money — the value that builds up inside a whole life policy typically grows slowly after fees. It shines for permanent coverage and estate planning, not as a substitute for retirement investing. If you bought whole life mainly as an investment, it's worth talking with a licensed agent about whether it still fits your goals.
Keep learning
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