FreeByte

Term vs whole life comparison

Compare premiums and see what investing the difference between term and whole life could build.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
$
$
20 yr
6.0%

Buy term, invest the difference

$127,061

Difference invested each month

$275

Total term premiums
$10,800
Total whole-life premiums
$76,800
Amount you contributed
$66,000
Growth
$61,061

Whole-life policies build cash value; compare this pot against the surrender value you are quoted.

Compare premiums and see what investing the difference between term and whole life could build.

A worked example

Starting figures

Term premium per year
$480
Whole-of-life premium
$3,200
Years
25
Investment return
6%

What it returns

Difference invested grows to
$157,079
Yearly difference
$2,720
Total extra premium
$68,000

How to read the results

The premium difference is invested monthly and compounded at your expected return.

With the defaults above, difference invested grows to works out at $157,079.

Methodology

The premium difference is invested monthly and compounded at your expected return.

  • · Ignores policy cash value guarantees
  • · Premiums stay level

Estimates only. Nothing here is financial advice. Spotted something wrong? Tell us and it gets fixed.

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