Term vs Whole Life Insurance

Feature Term Life Whole Life
Duration 10-30 years Lifetime
Monthly Cost $15-$50 $100-$500+
Cash Value No Yes
Best For Temporary needs Estate planning

How Much Do You Need?

Rule of thumb: 10-12x your annual income

  • Consider outstanding debts
  • Factor in future education costs
  • Account for spouse's retirement
  • Include funeral costs ($10K-$15K)

Average Costs by Age

Age $500K Term (20yr)
25 $18/mo
35 $23/mo
45 $48/mo
55 $118/mo

How to Save

  • Buy young - rates increase with age
  • Choose term over whole life
  • Get healthy before applying
  • Compare multiple carriers
  • Consider no-exam options