The Shortest Possible Answer
Buy term and invest the difference is right most of the time - but not all the time. Whole life earns its place in estate planning, business continuity, and a few specific personal scenarios.
When Term Is the Right Call
Time-limited needs are term's home turf. If you have a 25-year mortgage and three kids under 10, a 30-year term policy at $500K - $1M covers your highest-risk window at the lowest cost.
When Whole Life Earns Its Place
Three scenarios where permanent life insurance is genuinely the right tool:
- **Estate equalization** - leaving a business to one child and cash to another.
- **Buy-sell funding** - guaranteeing a partner can buy out your shares.
- **Special-needs planning** - funding a special-needs trust that must last a lifetime.
How to Avoid Being Oversold
Two warning signs: pressure to convert a term policy "while you can," and pitches that mix insurance with investments (IUL especially). Ask for an in-force illustration assuming worst-case crediting, not the rosy projection. A real agent will be honest about both sides.