However, let's look at the difference. With a house, your mortgage payment is usually set where it is right around what you were paying in rent. Sometimes it's a little more, sometimes it's a little less. In Indiana, the average mortgage is around $900 for a $120,000 home, while renting the same size home may be a little under that; let's say around $800 a month. But, the differing types of insurance don't have such a close comparison.

Some whole life carriers will charge you between $50 to $100 a month to carry their $100,000 worth of coverage. They'll tell you that it's a good buy compared to term life because your money earns interest and you can draw off of that in a jam. Sounds great, doesn't it? The problem here is that the majority of your monthly payment ends up in someone's pocket and that interest you're generating may be as low as 0.5% annually. You can get better in your regular savings account at the bank, let alone investing in funds! Of the money that's not pocketed immediately by the insurance agent, it's going to be...wait for it...invested by the insurance company in a high-rate account that puts even more money into their pockets, not yours.

Term is certainly the way to go. No, you don't build equity that you can draw from, but you do have a very low monthly payment. How does $11 a month sound? Even at the low end of the whole life payment plan, you're saving nearly $500 a year! And, you get just what you want...life insurance. If you wanted another investment, you would have gone to your broker, right?

Every insurance agent in the world will want to dial you in to a whole life plan. Not because it's the best option for you, but it's the best option for them. Investigate the term life plans available to you to see exactly what you need, then look at the monthly cost. Then, call to set up an appointment to put the numbers in front of your insurance agent and see what the similar whole life plan would run you. Chances are you'll know before you ever pick up the phone.