As financial decisions grow more complex with age, choosing the right life insurance plan has become a key consideration for many. In a recent insight shared by expert Akshay Sardana, the Vice President of Strategy & International Development at the Continental Group, the debate between whole life and term insurance is explored, revealing that sometimes the simpler, cheaper option may offer more clarity and financial control.
“You’re 35, juggling a mortgage, children, and a vague but growing thought about retirement. The insurance conversation lands on your lap at a dinner party, in a WhatsApp forward, or from a well-meaning colleague who insists that whole life insurance is the only mature, future-proof choice. ‘It’s an investment,’ they say. ‘It builds value. It’s for life.’ And they’re not entirely wrong. But what if they’re not entirely right either?” Sardana shares.
He highlights that clients often struggle to untangle “the security of permanence and the clarity of temporariness,” noting that while whole life insurance carries an aura of wealth-building, term insurance is often seen as limited and disposable. Yet, according to Sardana, the reality is more nuanced.
The Simplicity of Term Insurance
“It’s tempting to view insurance as a one-time fix. Sign the dotted line, secure the coverage, and carry on with life. Whole life plays directly into that narrative. It promises permanence. It accumulates cash value. It offers the comfort of never having to revisit the conversation again. But comfort can also come at a cost,” Sardana explains.
He continues, “Term insurance flips that model on its head. It’s temporary. It’s inexpensive. And it forces you to make deliberate choices. The premiums are lower, which immediately unlocks options: pay down high-interest debt, build an emergency fund, invest in markets that align with your risk appetite and time horizon. And because term insurance expires, it introduces a deadline – a point at which you need to have built other financial supports into your life.”
Sardana emphasizes that the so-called limitation of term insurance becomes a strength, nudging people to confront finances more intentionally and inviting active planning. “There’s also the beauty of simplicity. Term insurance doesn’t masquerade as a hybrid product. It isn’t part investment, part safety net, part loan facility. It’s just insurance: a contract that says if the worst happens during a set window, your loved ones won’t bear the financial burden. No ambiguity, no surprises, and sometimes, no better option.”
Whole Life Insurance: When It Makes Sense
Sardana stresses that whole life insurance isn’t wrong, but it isn’t always right. “Permanent insurance can be invaluable for people with long-term financial responsibilities that don’t taper off with time. Think of high-net-worth individuals with complex estate plans, or business owners looking for succession continuity. For such people, the permanence of whole life insurance offers a kind of certainty that no term plan can match.”
However, he cautions that lifelong coverage can lull people into delaying urgent financial decisions. “Because it’s more expensive, it often becomes a tradeoff – coverage versus flexibility. You pay more, which can mean doing less elsewhere. That’s why whole life insurance, for all its advantages, isn’t always the obvious choice. It works best when there’s a clear reason for that permanence.”
Clarity vs Comfort
“Majority financial obligations are temporary. Children grow up. Mortgages end. Expenses shift. Term insurance, in many cases, mirrors that trajectory better than a lifetime product. It matches protection to the arc of actual needs,” Sardana explains.
He concludes, “What whole life offers in emotional comfort, term offers in strategic discipline. Term insurance doesn’t ask you to buy peace of mind for life. It asks you to be active, involved, and realistic. For many, that’s not a compromise, it’s clarity. In the end, the smartest insurance decision isn’t the one that sounds most impressive or promises the most features. It’s the one that aligns with who you are, what you need, and how you plan to grow.”
Sardana urges readers to reflect, either independently or with a financial advisor, before committing to a policy that may not fully align with their life stage and financial objectives.
