Here is an overview of the most important points of this lesson. All policies fall into one of two camps. There are term policies, or pure insurance coverage. And there are the many variants of whole life, which combine an investment product with pure term insurance and build cash value. Insurance is sold, not bought.
Whole life is expensive.
Policies with an investment component cost many times more than term policies. As a result, people who buy whole life often can't afford an adequate face value, leaving themselves underinsured. Whole life policies are built on assumptions. And some companies keep these guesses of future returns on the high side to attract more buyers. Keep your investing and insurance strictly separate.