Why Invest In Whole Life Insurance? 
Whole life insurance has many advantages to it . The first being that your premiums are fixed and guaranteed for the rest of your life and as a permanent insurance program , it builds cash value over time . If it 's a participating whole life policy , any dividends that are paid out can be used to either increase the death benefit via paid up additions , reduce your premium , or make a payment to you directly -LRB- options depend on which carriers whole life policy you have -RRB- . If you use the dividends to reduce the premium , the policy can become self-sustaining after a number of years - meaning no more premium payments . Non-participating policies only build cash value - these types of plans do not pay out dividends . If you 're buying whole life coverage when you 're young and its cash value builds for years and years , it can create a nice nest egg for funds that can be used during your retirement years . It 's important to remember that if you borrow from an insurance policy , you 're creating a loan as the monies are expected to be paid back . If you cash out the policy , you lose the life insurance coverage . An alternative for those who are not very concerned about the cash value and want to maximize the death benefit of your life insurance , you may want to consider a guaranteed universal life policy instead of whole life . GULs can offer a larger amount of coverage than whole life policies for the same premium or save you a ton of money on your premiums for a given level of coverage . Make sure to consult with an experienced life insurance broker who can create a structure that will best serve your needs , goals , and budget . I hope the information is helpful - please feel free to contact me for help and if you have any other questions . Thanks very much . 