Does Whole Life Insurance Cost More than Term?
Yes, whole life insurance costs 3 to 5 times more than term life insurance. That is because whole life insurance has an investment component attached to it. A part of your premiums goes into an investment portfolio and begins to earn interest. After some years, you will gain cash value on your whole life insurance policy which you can withdraw if you need to. AccuQuote whole Life Insurance explains more clearly the difference between term and whole life insurance.
It may look like whole life insurance costs more than term insurance, but that is only initially. Since whole life insurance is meant to be kept for your whole life, your premiums do not increase, while people using term insurance will see their premiums go up. Additionally, if you purchase term life insurance and then developed health problems, you would be uninsurable at the end of the term. Whole life insurance also develops cash value, while term does not. The price of whole life insurance is reasonable when you consider the added benefits you receive.
