Whole Life vs. Term Life: The Ultimate Showdown
Choosing between whole life and term life insurance is one of the most common financial dilemmas. Let's break it down.
Term Life Insurance
Pros:
- Affordable premiums
- Simple to understand
- Flexible terms (10-30 years)
Cons:
- No cash value
- Coverage expires
Whole Life Insurance
Pros:
- Lifetime coverage
- Builds cash value
- Fixed premiums
Cons:
- Significantly more expensive
- More complex
Which is Right for You?
For most young families, Term Life offers the best bang for your buck, allowing you to buy adequate coverage for a low price. Whole Life is better suited for high-net-worth individuals looking for estate planning tools.