Weighing Term Life Insurance Against Whole Life

When it comes time to buy life insurance, you’re faced with a difficult choice. Do you buy low-cost term life insurance that retains no cash value or spring for the more expensive whole life option that doubles as something like a savings account?

In a MoneyNing post that probes the quandary, the author says she and her husband bought whole life insurance for five years before buying additional term life insurance. She says she regrets sticking with whole life for so long because it sucked a lot of money away from potential investments. If they would have gone with term life and invested the savings in an index fund, they would have made far greater returns than the 4 percent the insurance policy provided.

If you have life insurance, how did you decide which type to buy, and do you have any regrets?

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