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Which one is better whole life insurance or term life insurance ?

I bought a whole life insurance $500,000 for my 2 kids. I need to pay for 15 years which comes out to a total of $78,000 by the time I finish. Then, I'll have $500,000 for the rest of my life until I die, for my kids. However, a friend told me that I shouldn't have bought that. He said insurance companies are just trying to sell me something to trick me to into buying something that is not worth it. He said $500,000 that I pay insurance companies now is worth at the present dollar, but 20-30 years from now, it's not worth hardly anything. He said because of inflation the dollar is not going to be worth that much later as it will now. He explained in 30 years you cannot use $500,000 to buy like a good house like you can now. Do you think everything all prices will go up that much higher in 20-30 years ? I think $500,000 is a lot of $ for life insurance that I can give my kids later. How can that not be worth it ? Do you think what he said is true ? He said I should have bought term life, but I don't know how long I'm going to live. What if I still live after 20 years of paying for term life insurance ? Isn't the cost to buy more life insurance going to be super high because I'm old, let's say I'm 75 years old ? Which one is better whole life insurance or term life insurance ? What is your opinion ? I would like different people's opinion as I'm beginning to feel buying this whole life insurance $500,00 for my kids is a big waste of $ because of what my friend says. What do you think ? Thank you for your opinion !

Public Comments

1. Your friend is correct. Term is much cheaper. You can get level premiums for 30 years. Then you would have saved enough money that you can use that for retirement. And, then your kids may no longer be dependent on your income. You brought a life insurance policy on yourself in case something happens to you then your dependents would have money to pay the bills. Never accept solicitations on this website. It is against the rules to solicit business.
2. Hello, I do believe that you are paying a substantial amount mainly because your paying about $433 a month for a $500,000 death benefit. Did you know that with a 30 yr term, $500,000 which I sold today costed my client $41 dollars a month? (I sold exactly a $587,000 death benefit life insurance for $41 dollars a month). My client did have the same concern as you saying that there is a high chance of living past the 30 yr mark and I responded back to him saying that ING is one of the few companies that you can convert a term insurance into a permanent insurance without retaking the physical exam again. Boom! Done deal! Your intention of buying a whole life isn't just the death benefit but also the cash value and dividend (non guarantee) that it can generate. I've been lately reviewing alot of policies like yourself to make sure that the policy is set up in your best interest. Please shoot me an e-mail at nickhar130@gmail.com so that I can give you a specific second opinion based on your question. Thanks.
3. Try to read these articles to know more about Term vs Whole Life Insurance http://www.insure4u.com.au/life-insurance/10-things-to-know-when-it-comes-to-term-vs-whole-life-insurance/ http://www.smartmoney.com/plan/insurance/term-or-whole-life-8011/
4. Neither one is "better" for all situations. If you want coverage for 10 years, then buying a whole life policy would be ridiculous. If you want coverage forever then a term policy won't cut it. As far as paying the premiums for 15 years and being done, is that guaranteed? If you want coverage forever then look into a much lower premium that will guarantee the policy forever...like a universal life policy that's not built to build cash value (because if you need it for death benefit, then what's the point of the cash value really?).