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Term life is better. Invest extra in 401k, Roth instead of term life
Whole life has high fees, and is a lot more inflexible. Why wait until you are dead to access the money?
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Or the same 27F could get term insurance for peanuts, and invest in something much better like a Roth, 401k, HSA, 529 account.
Perhaps VUL after covering all those other boxes.
Term insurance as an income replacement, to make sure that those who depend on you are taken care of if the worst happens.
Whole life insurances are a terrible way to build wealth, opaque, expensive and ultimately destroying value vs. most alternatives. Drop any financial advisor who tries to push them - they have fat commissions in mind, not your best interest. There is a reason why whole life insurance pays the highest commission to the advisors / salespeople: they make a lot of money to the company, leaving litte to you.
Get term life insurance through Costco (Protective Life). Best rates I’ve found when I did a ton of research previously
What’s your coverage and premium? Looking to get 2m on my 35 yo husband
Okay so it sounds like term is the way to go. Thank you all for your insights!!
Term is best for wealth building,
because permanent policies like whole or universal are very expensive, low-return financial products.
Permanent policies are best for wealth preservation,
primarily by avoiding certain taxes on intergenerational transfers. The tax savings more-than-offset the high fees / low returns.
Some here commented about borrowing against a permanent policy to access cash... This is generally a complicated and expensive activity (high fees). Avoid that.
Term life
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Late comer…
Take the maximum you can through group coverage with your employer… that’s the quickest, easiest and least expensive option and it typically doesn’t require underwriting under certain thresholds… there’s typically a portability feature that allows for you to keep the policy upon separation.
What I typically recommend is to take out a small whole life ($25k-$50k) policy to keep premiums low… you’re young, and have plenty of time for growth… so universal or even a variable could make sense… covers end of life expenses and leaves a little bit left over for beneficiaries immediate needs… also some policies have LTC riders available, which most people don’t consider…
Layer in term coverage for 10 years of income replacement, education expense and all debt that you currently have (or anticipate assuming near term)… I typically say do a 30 year… your debt load should be manageable at that point, and if you exercise good financial habits, you should have a decent net worth…
You can always pickup more term coverage if situations change…
Term life for income replacement until you don’t need it anymore. I do not need a complicated investment vehicle in my life insurance.
I don't know your financial situation but try the government. You just might get it for free or darn near free if you jump thru the hoops.