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Whole life insurance vs term life - which side are you on?
I ran the numbers for my family and term life at $500k coverage costs me $30 a month while whole life quoted $220 for the same amount. Is the cash value buildup really worth that extra $190 a month for anyone here, or is it just a trap for people who want an investment wrapped in insurance?
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simonmoore1mo ago
My 57-year-old back gave out last year and I spent more on chiropractor visits than the difference between those two policies, so I might not be the best example. I looked into whole life too and the numbers just didn't add up for me. The cash value grows so slowly that you'd need to keep the policy for 20+ years just to break even on those higher premiums. I put that extra $190 into a simple index fund instead, and now I have both the insurance and an actual investment I can touch. Whole life feels like it tries to be two things at once and does neither one great.
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haydenp951mo ago
Hold on, you spent MORE on chiropractor visits than the difference between two insurance policies? That's insane. Like I knew back problems were expensive but that puts it in perspective. My dad messed up his back last year just bending over to tie his shoe and it cost him a fortune too. Whole life is a scam for most people though, you're right. I did the math once and realized you'd have to keep that thing for 25 years before you even saw a dollar of real growth. Index funds all the way, at least you can actually touch that money without jumping through hoops.
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