I read this in The Ultimate Financial Plan: Balancing Your Money and Life* in the chapter on life insurance:
“Although the benefits of permanent life insurance exist, the costs must also be weighed. I recently replaced one of my term life insurance policies with a new policy bearing a $1 million death benefit and an annual premium of $465 per year, so in preparation for this chapter I reached out to several life insurance agents to see what the cost would have been for permanent life insurance policies with the same death benefit. The answers? A comparable whole life policy was 20 times more costly$10,380 per year! The universal or variable life policies would cost around 10 times the amount that I am paying for my term policy. Iâ€™d rather control the fate of that extra money than trust a life insurance company to manage it.”
I’m about halfway through The Ultimate Financial Plan: Balancing Your Money and Life* and I have to say, I’m impressed. The main author, Tim Maurer, clearly has the reader’s best interest at heart throughout the book. Good stuff for someone just starting out.