Free Term vs Whole Life Insurance Calculator
Compare term life and whole life insurance costs and the potential investment difference over time.
USD
USD
years
%
Monthly Savings (Buy Term)
$310
Total Term Premiums$9,600
Total Whole Life Premiums$84,000
Invested Savings Value$161,487
Monthly Savings (Buy Term) vs Term Life Monthly Premium
Buy Term and Invest the Difference
This strategy compares two approaches:
1. Whole life: Higher premiums that build cash value inside the policy 2. Term + invest: Lower premiums, invest the savings in the market
Formula for Invested Savings
FV = Monthly Savings x [(1+r)^n - 1] / r
Where r is the monthly investment return and n is total months.
Considerations
Example Calculation
$40/month term vs $350/month whole life over 20 years at 7% return.
- 01Monthly savings = $350 - $40 = $310
- 02Total term premiums = $40 x 240 = $9,600
- 03Total whole life premiums = $350 x 240 = $84,000
- 04Invested at 7% for 20 years = $310 x [(1.00583)^240 - 1] / 0.00583 = ~$161,400
Frequently Asked Questions
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