Who Should Buy Whole Life Insurance Policy? 
Whole life insurance is a great vehicle for planning for the future . The premiums and death benefit remain fixed and guaranteed for life while the policy can build cash value at a great rate - this structure is known as a non-participating whole life policy . The other type is called participating whole life policy . These policies can pay out dividends which can be used in several ways : 1 -RRB- Decrease the premium - the premium would eventually hit $ 0 at some point and the policy would , in essence , be self-sustaining meaning the dividend is equal to or greater than the premium for the program -LRB- if greater , the difference can be used to increase the cash value or increase the death benefit -RRB- 2 -RRB- Purchasing paid-up additions - these additions increase the face amount of the policy 3 -RRB- Increase the cash value at a faster rate The question of who should buy whole life insurance depends on the need for the coverage . When you 're young and you have 40 years to grow the cash value/face amount , it can be a helpful vehicle for growing funds while providing great life insurance protection -LRB- especially participating WL policies -RRB- . If you are buying purely for the death benefit , I recommend you look at purchasing a Guaranteed Universal Life policy -LRB- these policies maximize the death benefit and minimize the premium as they do n't focus on the build-up of cash value -RRB- . If you only need the coverage for a set amount of time -LRB- e.g. 20 years -RRB- , then you may want to look into term life insurance . While whole life has many advantages , it is also the most expensive form of life insurance . Consult with an experienced life insurance broker to find out which benefit structure will be most suitable for your needs and budget . Please feel free to contact me for assistance . Thanks very much . 