What is one disadvantage of whole life insurance?

Whole life insurance is designed to provide lifelong coverage and accumulate cash value over time. However, one notable disadvantage is that it typically comes with higher premiums compared to term life insurance. This is because whole life insurance not only covers the insured's life but also includes a savings component that grows over time, which results in increased costs.

In contrast, term life insurance tends to offer lower premiums because it provides coverage for a specific period without accumulating cash value. This higher cost can be a barrier for some individuals seeking affordable life insurance options, particularly if they do not need lifelong coverage or are looking for the most economical choice for their insurance needs.

While whole life insurance has benefits like lifelong coverage and the ability to accumulate cash value, the increased premium is a key consideration for many policyholders when determining the type of insurance that best meets their objectives.