See the cost gap between term and whole life — and what investing the difference could be worth.
Whole life premium and cash value are rough illustrative multiples, not a real policy illustration — actual whole life policies vary enormously by insurer. Ask any insurer for a personalized illustration before deciding.
See real term life pricing for this coverage amount.
Compare term quotes →Request a personalized whole life illustration from a licensed agent.
Get a whole life quote →Term life covers you for a fixed period at a much lower cost, with no cash value — it either pays out during the term or it doesn't. Whole life covers you permanently and builds a cash value you can borrow against, but costs dramatically more for the same death benefit. This calculator runs the classic "buy term and invest the difference" comparison: what if you bought the cheaper term policy and invested what you saved?
The core argument for "term + invest the difference" is that historically, market returns on the invested difference often outpace a whole life policy's cash value growth over long periods — but this isn't guaranteed, and it requires the discipline to actually invest the difference rather than spend it. Whole life's appeal is the guarantee and forced savings discipline, which is worth something for people who wouldn't otherwise invest consistently.
Real whole life cash value growth is not linear — it's usually minimal in the first several years due to fees, then accelerates. Dividend-paying whole life policies (from mutual insurers) can perform differently than this simplified estimate. This is a starting point for the conversation, not a substitute for a real policy illustration.
It can be, for specific goals: permanent coverage that never expires, estate planning, or as a forced-savings vehicle for people who wouldn't otherwise invest consistently. For pure income-replacement needs during working years, term is usually more cost-effective.
Many term policies include a conversion option allowing you to convert some or all of the coverage to a permanent policy without a new medical exam, usually within a specified window. Check your policy's conversion terms if this flexibility matters to you.
Depending on how much cash value has built up, you may be able to use it to keep the policy active for a period, take a reduced paid-up policy, or surrender it for the cash value. Stopping a term policy simply ends the coverage.