A lot of people have written a lot about the difference between the 2.
So instead of comparing them again, we recommend you read the difference in the link below:
The Case of Term vs Whole Life Insurance
Instead, I will go into the figures.
Context:
30-year-old male non-smoker planning for $100,000 in death payouts
Quotes are figures I got from CompareFirst.
Term Life:
Whole Life:
I covered the insurance companies - but you can probably do a simple search on CompareFirst to find the insurance companies.
$1,094 per year in premium difference
In total, you pay $3,570 in premiums for Term, and $46,761 in premiums for Whole, a big $43,191 difference.
Had you took that $1,094 difference in annual premiums and invested it in an index fund that has a long-term returns of 6% annually, that pot of money would have grown into $120,815.65 by the end of the 34 years ...
