Question 1

Should I buy term life or whole life insurance?

Accepted Answer

For most people, term life is the right answer. It replaces income during dependent years at a fraction of whole life's cost. Whole life is an insurance product wrapped in a savings vehicle with high fees and lower returns than comparable index funds for most cases. 95%+ of households should use term plus separate investments, not whole life.

Question 2

How much does term life insurance cost?

Accepted Answer

For a healthy non-smoker age 35, a 20-30 year term policy with $1M in coverage typically costs $25–75/mo. Cost varies significantly by age, health status, coverage amount, and term length. The cheapest quotes for non-smokers in good health come from carriers like Ethos, Bestow, and Haven Life.

Question 3

When does whole life insurance make sense?

Accepted Answer

Whole life is rarely the right product unless you have maxed out all tax-advantaged investment accounts (401k, IRA, HSA) and still want forced savings, or if you have an estate-tax liquidity problem — a large illiquid estate that needs life insurance proceeds to pay estate taxes at death. Outside these narrow cases, term plus investing the premium difference produces better outcomes.

Question 4

What is the difference between term and whole life insurance?

Accepted Answer

Term life covers a fixed period (10, 20, or 30 years) and pays only if you die during the term. Whole life covers you permanently, builds cash value over time, and has a guaranteed death benefit at any age. Whole life premiums are typically 5–15x higher than equivalent term premiums because the product includes a savings component.

Term Life vs Whole Life Insurance — Which You Actually Need (2026)

Term Life vs Whole Life Insurance — Which You Actually Need (2026)

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