Term Life: Renting Coverage
Term life covers you for a set period — 10, 20, or 30 years. It's cheap when you're young and healthy. But when the term ends, the coverage ends. If you're still alive (which is the goal), you've paid years of premiums and have nothing to show for it. Renewing at 70 or 75 is brutally expensive — if it's even offered.
Whole Life: Owning Coverage
Whole life never expires. The premium is fixed from day one and never goes up. It builds a little cash value over time. It costs more per month than term at the same face amount — but for final expenses, the face amounts are small ($5,000-$35,000), so the monthly cost stays manageable.
The Simple Rule
Protecting income while you work? Term can make sense. Making sure your funeral is paid for whenever you die? That's a "when," not an "if" — and whole life is built for "when." Final expense policies are whole life for exactly this reason.
What About the Price Difference?
Yes, whole life costs more per $1,000 of coverage than term. But you're buying $10,000-$20,000, not $500,000. The difference is tens of dollars a month, not hundreds — and unlike term, it can never leave you uncovered at 80.
Frequently Asked Questions
I already have term life. Should I switch?
Don't cancel term coverage until new coverage is approved and in force. Many people keep term for income protection and add a small whole-life final expense policy for end-of-life costs. They do different jobs.
Does whole life really last forever?
Yes, as long as premiums are paid. There's no expiration age. Some policies even stop charging premiums at 100+ while keeping coverage in force.
What is cash value, really?
A small savings component inside the policy that grows slowly over years. You can borrow against it if needed (unpaid loans reduce the death benefit). It's a side benefit — the protection is the point.