How Much Whole Life Insurance Is Enough? 
It depends on individual or family circumstance . A better question is how much life insurance is enough ? Remember one reason for Life Insurance is income replacement . Having enough life insurance to ensure a family is protected is usually the best place to start . A term life insurance contract typically provides a large death benefit with a low premium payment . Provide peace of mind knowing your family will be protected then decide if and how much Whole Life Insurance is enough . The term Whole Life means you will be paying premiums your entire , or `` Whole '' life . Having too much Whole Life Insurance might be an issue if the primary breadwinner loses his or her job and can no longer afford making premium payments . This is where Whole Life can be costly . When considering the purchase of Whole Life Insurance it is a long term , risk adverse strategy . Make sure you are able to make premium payments for at least 10 to 12 years regardless of job loss , increase in expenses , etc. . All the risk is transferred to the insurance carrier and the interest crediting provides a guarantee . Plus there is usually a ` dividend ' or return or premium . The only thing the insured needs to do is make sure they make the premium payments . There is no flexibility with these premiums , like Universal Life Insurance . It generally takes a long time to build cash value . For standard products and level premium schedules the break even point for premiums paid equaling cash value accumulation is generally 10-12 years . Always ask your agent questions if you are unsure of how life insurance products work . 