Eli5: whats the difference between term vs whole life insurance?
In: Other
Term life insurance is very straightforward. You pay $X a month for Y years, and if you die during that time period you get $Z. It’s a commodity and you can shop purely on price at a site like term4sale.com. If you have other people in your life that you financially support with your employment who cannot support themselves if you die (eg children under 18), you should probably have term life.
Whole life mixes life insurance with investing. It’s always a bad idea and is designed to be sold not bought. It earns high commissions for the sales people. Buy term, which is cheaper, and invest the difference yourself.
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