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Whole Life Insurance

How much does whole life insurance cost compared to term life?

Whole life insurance typically costs five to ten times more per month than term life insurance for the same coverage amount, because it lasts your entire life, is guaranteed to eventually pay out, and builds cash value.

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For example, a healthy 40-year-old might pay around $30 to $50 a month for a $250,000, 20-year term policy, but several hundred dollars a month for the same face amount in whole life coverage.

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The higher cost reflects the certainty of a payout and the added savings component — whether that tradeoff makes sense depends on whether you need coverage for a limited time or for the rest of your life.

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