Why Is Whole Life Insurance So Expensive? 
Whole Life Insurance is a contract in which the company guarantees to pay the death benefit in exchange for recurring premiums that never change . If you were to buy pure insurance for one year the premium would be very low in the early years but would rise rapidly to a ridiculous premium in later years . The design of a whole life plan is to have a level premium . In order to accomplish this the company creates reserves which offset the cost of the premiums in later years . These reserves are listed in the policy as surrender values . The company will , at any time will allow you to surrender the policy in exchange for the amount listed in the policy . Only a permanent life insurance policy develops these reserves . 