Sarah bought a $500K whole life policy at 28. At 58, she cashed it out—lost $38K after fees. Mark bought 20-year term for $28/month and invested the difference. His portfolio is now $420K. Same coverage, different paths.
Term vs. Whole Life at a Glance
| Feature | Term | Whole |
|---|---|---|
| Cost | $25–$50/mo ($500K, 35-yr-old) | $300–$600/mo |
| Duration | 10–30 yrs | Lifetime |
| Cash Value | None | Grows tax-deferred |
| Best For | Temporary needs (mortgage, kids) | Estate planning, legacy |
Choose Term If…
- You need $250K–$2M coverage for 10–30 years
- You have debt, mortgage, or young kids
- You want to invest the difference (avg. 7% return beats cash value)
Choose Whole If…
- You want guaranteed lifetime coverage
- You’re maxing 401(k)/IRA and need tax-advantaged growth
- You’re planning estate taxes or special needs trusts
Hybrid “Return of Premium” Term Pay $80/mo for 20 years → get all premiums back if you outlive the term. Best of both worlds for some.
3-Question Quiz
- Do you need coverage past age 65?
- Are you already maxing retirement accounts?
- Is legacy/estate planning a goal?
Mostly NO → Term Mostly YES → Whole or Hybrid
Not sure? Answer the quiz and get a custom quote in 60 seconds.
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