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I was dead set against term life insurance, but my buddy broke it down for me
I always figured whole life was the only way to go since you get the savings part. But my friend Dave showed me the numbers on his term policy. He's paying $35 a month for a $500k policy, 20 year term. I was looking at $280 for a similar whole life plan. After he explained how he just invests the difference himself, I finally saw his point. I switched over last month and I'm already putting the extra $245 into a simple index fund. Has anyone else made this switch and regretted it or loved it?
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sullivan.abby5mo ago
Wait, so you're telling me Dave isn't just a random dude at a bar?
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jenny_sullivan975mo ago
The part nobody talks about is what happens if you actually get sick during the term. Dave might be fine now, but if he gets diagnosed with something serious in year 12, that term policy expires at 20 and he's totally uninsurable after that. Whole life has its own problems for sure, but with term you're basically betting you'll stay healthy enough to qualify for a new policy later. @sullivan.abby might have a different take since she's seen both sides, but my cousin got hit with a cancer diagnosis at 38 and his term ran out at 45. He couldn't get any new coverage after that.
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