What Is The Purpose Of Whole Life Insurance? 
The purpose of whole life insurance is to provide guarantees . You know what ? It does a very good job at this . Guarantees are a godsend in a financial world in which cycles and ups and downs and cost increases are the norm . Its nice to have a product you can truly count on . These guarantees come in three delicious flavors : Flavor number one : a guaranteed premium . As you get older , your price stays the same . As it costs more for the company to insure you , your price stays the same . If the company has a bad investment year , or two , or three , your price stays the same . Thats good . But theres more . Flavor number two : a guaranteed death benefit . You see all those variables mentioned in number one above that could affect your price but dont ? They could also affect your death benefit . But they dont . Neither your age , nor their increasing cost , nor their poor investment performance can reduce the benefit you were leaving to your heirs . That is really good . But we have one last delicious flavor : Flavor number three : a guaranteed cash accumulation . Do yourself a favor and compare the guaranteed growth of cash inside a good whole life contract with other so-called guaranteed investments out there . You will notice that whole life basically beats the pants off the competition in this regard . Of course , you always have to be wise about taking money out of life insurance , and make sure you dont reduce your death benefit to an undesirable amount . But given that , whole life can make a real valuable contribution to the conservative portion of your financial portfolio . 