Term life insurance offers low cost protection with guaranteed level premiums for a fixed duration, typically 10, 15, 20, or 30 years. Whole life insurance offers lifetime guaranteed coverage with the additional benefit of accumulating cash values.
It's the great debate among life insurance professionals, consumers, and financial planners...
Term life insurance vs. whole life insurance.
Perhaps you've heard Dave Ramsey say, "You should only buy low-cost level term life insurance. Anything else is a rip-off or a gimmick," or Suze Orman state that whole life insurance is a "waste of money."
In fact, it seems like the only people who say whole life is a good idea are... Insurance Agents.
Surely only a very small minority of people still buy whole life, right?
Wrong! The American Council of Life Insurers reported in 2014 that 63.7% of all individual life insurance policies bought in the U.S. were Whole Life Insurance policies.
At Huntley Wealth & Insurance Services, we don't offer whole life, and never will. We believe agents push whole life to their clients to earn high commissions, and consumers continue to buy because the benefits are confusing.
Consumers are made to understand that with whole life, they are getting a blend of permanent life insurance protection as well as some cash value build up that may be able to supplement their retirement. The problem is 99% of them don't need permanent coverage. They need term.
We believe that if consumers knew the cost of term life insurance, and what their money could do for them if they were to "buy term and invest the difference," that far fewer people would buy whole life insurance.
This calculator aims to provide what no other life insurance needs calculator provides, clear and conclusive proof that buying term and investing the rest is almost always best for consumers.
Whole Life versus Term Life Insurance Calculator
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Cost Comparison of Term vs. Whole Life:
|30 Year Annual Term Premium:|
|Annual whole life premium:|
Let’s See What Happens if We Invest
the Savings, , at % Over 30 Years...
Assuming an annual % return compounding, with deferred (or no) taxation during accumulation.
Whole Life Insurance:
| Cost of whole life insurance
over 30 years:
| 30 year whole life
Term Life Insurance:
| Cost of term life insurance
over 30 years:
| 30 Year Investment Value
(Investing Savings @ %):
Recalculate On Your Own Terms
Free Whole Life Insurance Analysis
Did you get sold a bill of goods and you're not sure what to do now with your whole life policy? Fill out this form to bypass our agents and one of our owners Chris or Kim will contact you directly.
Assumptions and Disclaimers
Assumptions: We have assumed an annual % return compounding, with deferred (or no) taxation during accumulation. The assumption is that these funds would be available for tax-free withdrawal, similar to withdrawals from a Roth IRA or tax-free loan from a life insurance policy. These are loose assumptions, and for illustrative purposes only. In the case that the savings by buying term instead of whole life were to exceed $5,500 (or the current allowable max contribution to an Roth IRA), we have NOT adjusted our assumptions for these maximums. When available, we have compared whole life insurance to 30 year term life insurance. Longer terms are not available at older ages, so some calculator uses will see term rates presented for shorter term lengths, such as 15 or 20 years instead.
Disclaimers: Term and whole life rates above are not actual quotes from insurance carriers. They are estimates developed internally at Huntley Wealth & Insurance Services for illustrative purposes only, which we believe reflect current whole life and term rates from some of the top life insurance carriers in the US. The rates above are not to be considered an offer for insurance. Do not use this information to make any decision, as our numbers could be completely wrong. Each individual must speak to a knowledgeable financial or insurance professional for accurate quotes and advice as to how life insurance fits into his or her overall financial plan. We’re just showing you what the numbers are under the above assumptions and any minor change to the numbers, your financial situation or the cosmos could completely throw these numbers off and so you shouldn’t rely on them but thank you for using our calculator. Now don’t make any decisions based on what information you did or did not imply from it. And even after we’ve told you not to use this information, if you do, you cannot sue us because we’ve already told you the numbers are not be be used for such purposes. Entertainment only.