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Term Life Insurance

Is term life insurance cheaper than whole life insurance?

Yes, term life insurance is almost always significantly cheaper than whole life insurance for the same coverage amount, often by a factor of five to ten times less per month, because it only covers a limited period and doesn't build cash value.

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Whole life costs more because it's guaranteed to pay out eventually (since it lasts your entire life) and includes a savings-like cash value component that the insurer must fund and manage.

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The tradeoff is that term coverage eventually ends, while whole life coverage is permanent — so the better choice depends on whether you need protection for a limited time or for life.

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