Covers you for 10-30 years at low cost – ideal for parents covering income while kids are young.
Key Takeaways
- Term = cheap protection for a period
- Whole = permanent with cash value
- Buy based on dependents, not fear
Term Life
Covers you for 10-30 years at low cost – ideal for parents covering income while kids are young.
Whole Life
Lasts forever and builds slow cash value but costs far more. Often oversold to the wrong buyer.
How Much to Buy
A common rule: 10-12x annual income if others depend on you. Single, no kids? You may need little.
Quick Comparison
| Term | Whole | |
|---|---|---|
| Cost | Low | High |
| Duration | Set years | Lifetime |
| Cash value | No | Yes |
Frequently Asked Questions
Do singles need it?
Usually not, unless someone co-signed debt or depends on your income.
When to buy?
When young and healthy – premiums are dramatically cheaper.