Money Supply and the Money Multiplier. Money, either in the form of currency or as bank reserves, is a liability of the central bank. The central bank controls the monetary base, expanding or contracting it at will, according to the needs of the economy.
Whole life is also more expensive because of the costs of storing and investing your premium money. Unlike term, the money that you put into your whole life policy can be borrowed from the policy if you need it. Term policies only collect enough to cover the cost of your insurance, and have no cash value.
Term Life Insurance Really Is the Most Cost Effective Life Insurance. Now that you know the full story on why whole life insurance is more expensive than term, itâs easier to see how term life insurance is the most cost-effective type of policy you can own. Yes whole life is permanent life insurance, and it has an investment provision.