Comparisons
between whole life insurance and term insurance are usually
simplified by the issue of price. Whole life is more expensive when
you shop for protection.
On
the other hand, for those who need forced savings and who would not
put what they would save from lower term life premiums periodically
into proper, low cost mutual funds, whole life is still a choice. And whole life policy earnings, while lower, are tax exempted.
Another
comparison often overlooked: There is always an extended term option
in a whole life policy; the policyholder can convert the contract
into term insurance at a later date, and without the need of a
physical exam, even if otherwise uninsurable. (See the Earl J.
Weinreb NewsHole® comments and @BusinessNewHole tweets.)
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