Why Is Whole Life Insurance Good? 
Why is Whole Life insurance good ? Ah - where to begin ? There are so many good things about Whole Life ! I like the points Larry made above here , and the points that DM Rozek made . So rather than restate those points I 'll start by saying that your best Whole Life policies are with the strongest , oldest , Mutual insurance companies that pay dividends to the policy holders . There is no cash value at all with Term insurance so that 's a definite advantage of Whole Life . Beyond the other points mentioned above by the other contributors , what I like to help my clients understand is the `` infinite banking '' uses , or the `` interest arbitrage '' strategies that Whole Life insurance makes possible . The cash value of Whole Life is a liquid asset that can be used without incurring a taxable event by means of a policy loan . The interest on policy loans is almost always lower than the interest and dividends paid into policy cash value . And when you have a policy with a mutual company that offers non-direct recognition loans your cash value continues to accumulate compounded as though the loan was never taken . And when borrowing from your cash value yo are n't locked into a repayment schedule as you are with a bank . 