Introduction

Life insurance protects the people who depend on you. In 2025, buying coverage is easier than ever, but plans and prices still confuse most families. This guide explains the difference between term and whole life insurance, shows typical price ranges, and outlines a smart process for comparing quotes without overpaying.

Term vs Whole Life: What's the Difference?

Term Life

Coverage for a fixed period (10, 20, or 30 years). It's the purest form of insurance—no cash value, just a payout if you pass away during the term. It's usually the lowest-cost way to buy meaningful protection for family income, mortgages, or education goals.

Whole Life (Permanent)

Coverage that lasts a lifetime and builds cash value. Premiums are much higher, but policies can accumulate a savings component and may pay dividends. Good fit for advanced estate planning—less ideal if your main goal is affordable income protection.

How Much Coverage Do You Need?

A simple rule: 10–15× your annual income, adjusted for mortgage balance, children's ages, and existing savings. For a more tailored number, add up debts + future goals (tuition) – current assets.

Typical Price Ranges (Illustrative)

• 30-year-old, healthy, €500k term (20 years): ~€15–€30/month
• 40-year-old, healthy, €500k term (20 years): ~€25–€60/month
• Whole life: often 5–10× more for the same death benefit

How to Compare Quotes Like a Pro

1. Match term length and coverage across quotes (apples-to-apples).
2. Check the insurer's financial strength rating (AM Best, S&P).
3. Disclose health history honestly—surprises can void claims.
4. Understand riders (critical illness, waiver of premium, child rider).
5. Lock rates while you complete exams (if required).

Case Study

A couple in their mid-30s compared five term policies for €750k/25-year coverage. By matching term and choosing insurers with stable dividends and strong ratings, they saved ~€21/month compared to their first quote—over €6,000 across the term.

Bottom Line

For most families, term life delivers the best price-to-protection ratio. If you need lifetime coverage or estate tools, explore whole life with a fee-only advisor. Always compare at least three quotes with identical terms.