My insurance agent keeps telling me term is more expensive then whole life in the short term. Paying about 2.6k a year for whole life with ci and eci. Is is true that term is more expensive?

Hi there, generally speaking, term is more expensive (in the absolute amount of premiums paid) than whole life if any of the following happens:

• the term plan sum assured is very high, like $500k
• the term plan is sized to cover you beyond 65yo
• you are pretty old, like at least 45yo when you receive the quote to buy a term plan

You might want to consider term plan which covers you till age 65 (Means you got to pay premium from the start to age 65) but if you get a whole life plan (You can choose your premium payment term like 15, 20, 25years) then get covered till 99 years old.

One more thing to consider is that term plans do not have any cash value (Anything that you use to pay, you won't be able to retrieve them back if nothing happens to you) but for whole life plan, there is cash value.

In term of relative cost, it may be true, since you are basing it on cost alone

Example: Term is $800 per month, but if you pay till 65 (assuming you are 30 now), that's 35 * 800= $28,000.

A whole life limited with CI may only cost $1,500 * 15 years = $22,500 and has cash value. But...

Time value of money and investment return is not calculated. Hence why people say BTIR is the best.

A lot of people make this mistake of thinking in absolute terms like this.

No. This just came out, is a good answer to you question :

https://www.firepathlion.com/i-threw-away-10000...