This is the most common question we hear, and the answer is simpler than the insurance industry makes it seem.
Term Life: Pure Protection
Term life is straightforward. Pick a coverage period (10, 20, or 30 years), and if you pass away during that time, your beneficiaries get the death benefit. A healthy 30-year-old can get $500,000 of coverage for $20-30 per month. That same coverage in whole life would cost $300-400 per month.
Free: Utah Family Coverage Checklist
Get the 7 coverages every Utah family should have.
Whole Life: Permanent with Cash Value
Whole life covers you forever and builds cash value you can borrow against. The premium is fixed and guaranteed. The trade-off is premiums 10-15 times higher than term for the same death benefit.
The Bottom Line
For most families, term wins. Get the right coverage amount first, then decide on the type. The worst thing you can do is buy whole life when you can only afford a fraction of the coverage your family actually needs.
