Should you choose term life insurance or whole life insurance? This term vs whole life calculator compares total premium costs and estimates what you might accumulate if you buy term life and invest the monthly premium difference — a common educational comparison, not a substitute for personalized insurance advice.
How to use this calculator
- Enter the coverage amount you are comparing.
- Enter monthly premiums for term and whole life quotes you received.
- Enter term policy length, expected investment return, and years to compare.
- Review total costs, invested difference growth, and the educational recommendation.
Formula
Total premiums = Monthly premium × 12 × Comparison years (capped by term length). Invested difference = Future value of monthly (whole − term) premium savings at your expected return.
Example
A 35-year-old comparing $500,000 coverage with $35/month term and $420/month whole life over 20 years at 7% return may see term premiums around $8,400 while investing the $385/month difference could grow to a much larger amount — illustrating why many planners discuss buy term and invest the difference.
Frequently asked questions
- Is whole life always a bad choice?
- No. Some people want permanent coverage, estate planning features, or forced savings. This tool only compares simplified costs and does not replace a licensed agent or advisor.
- Does this include whole life cash value?
- No. Cash value, dividends, surrender charges, and taxes are not modeled. Treat results as educational only.