Which is better — whole life or term life for mortgage coverage? Term life is almost universally the correct choice for mortgage coverage. The reason: whole life insurance costs approximately 10–15 times more than term life for the same initial death benefit. A 40-year-old male pays approximately $43/month for $500,000 in 20-year term coverage. The equivalent whole life policy from the same carrier runs approximately $440–$460/month. The mortgage is a time-limited obligation — it ends in 20 or 30 years. Paying permanent whole life premiums to cover a temporary obligation is a poor use of capital. Buy term; invest the difference.