Whole Life Insurance... Worth it or not?

Avatar of u/deva

Let’s analyze your policy or quote to see if it makes financial sense. Remember, beyond the numbers, it’s still important to consider it as life insurance.

Last update Oct 2024
  • Scenario 1: WLI cash value
  • Scenario 2: No WLI.. just invest normally
  • Scenario 3: WLI death benefit

This chart displays two lines rising at age D, reflecting your policy or quote at that specific age. To compare different ages, adjust inputs D, E, and F to match the details from your policy, typically found in a large table by age.

Age
Try your numbers:

A =

B =

C =

D =

E =

F =
Confirm Delete

Are you sure you want to delete ": "?

Add Input
  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
    Real estate, commodity, bonds, ...
  • Installment Loan
    Mortgage, car loan, ...
  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age (already added)
    Show "Age" instead of "# Years from Now."
  • Retirement Age
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

Scroll up to view updated chart.

Not what you want?

How is Cash Value calculated?

Suppose you cash out the WLI policy at that age

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

G̃ =

Calculations

(Expressions are evaluated at every year.)

Confirm Delete

Are you sure you want to delete ": "?

Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
  • Take Installment Loan
    Take a mortgage, loan, etc.
  • Invest
    Receive/Spend a lump sum.
  • Expect to Invest
    Expect to receive/spend a lump sum.
  • Expect Monthly Cash Flow
    Expect to receive/spend cash monthly.
  • Expect Yearly Cash Flow
    Expect to receive/spend cash yearly.
  • Define Variable (Numerical)
    Calculate an intermediate value.
Add Intermediate Calculation
  • Define Variable (Numerical)
    Calculate an intermediate value.
  • Define Variable (Cash Flow)
    Calculate a combined cash flow.