By: Manoj Prasad
Whole life insurance policies provide lifetime coverage, but premiums can be over 17x higher than term life
A 30-year-old may pay $26/month for a $500k 20-year term policy, but $451 for the same whole life coverage
Whole life accumulates cash value you can borrow against, but that takes time to build up
Steep whole life premiums can stretch budgets and increase the risk of lapsed coverage
Lapsed life insurance due to unaffordable premiums leaves families unprotected when they need it most
Term life gives robust protection at a fraction of the cost of whole life
Term life premiums are low enough that policies rarely lapse due to nonpayment
Paying less for term means having more money to invest for the future
For most households, term life makes more financial sense than overpaying for unnecessary whole life