Term vs Whole of Life Insurance

This calculator compares term life (fixed period, 5-10x cheaper) against whole of life insurance (permanent cover, guaranteed payout but significantly more expensive). Most people need term — for mortgage protection or income replacement.

Enter the cover amount, your age, and the term you are considering for term insurance versus whole of life. Term insurance pays out only if death occurs within the stated term — appropriate for covering a mortgage or income replacement during working years. Whole of life insurance pays out whenever you die, making it a guaranteed payment rather than a contingent one. The premium difference is significant: whole of life is substantially more expensive because the insurer knows with certainty that a claim will eventually be made. Whole of life cover is primarily used for inheritance tax planning and legacy goals rather than income or mortgage protection. For most families with a mortgage and dependants, term insurance provides the right protection at an affordable premium.