When Is It A Good Idea To Buy Whole Life Insurance? 
Whole life insurance is for a very special kind of person . First of all , you are someone who sees the need for life insurance protection on a lifelong basis . Not just to cover the mortgage , not just to protect your family , not just as a supplement for your retirement . You face the fact that as life goes on , your need for life insurance changes , but for many people , the need is always there . And it could be for you . You know that if you bought term insurance , odds are you 'd end up buying another policy anyway , after that one renews . At a higher price . And hopefully youre insurable . Might as well lock in to guaranteed rates on a permanent basis . This brings up the second point . You are a guarantee-oriented type of person . You realize that life insurance is the foundation of your financial portfolio . As such , it has to be strong . Reliable . You do n't want too many variables in this product because , if you have a shaky foundation , your whole portfolio could crumble . Therefore , you want a guarantee on the premium , and you want a guarantee on the death benefit . You are also someone who appreciates the added benefit of cash value inside whole life insurance . For many people , whole life insurance is the guaranteed portion of their asset portfolio . No other product gives better guarantees -LRB- go ahead and check out the interest rates on guaranteed products out there . Then compare them to the guarantees whole life gives you . -RRB- On top of that , with a top-flight company , the dividends - the non-guaranteed portion of the cash build up - can be pretty rich . With a little strategic thinking , those dividends can enhance the value of that product . They can be used to offset the cost . They can be used to enhance the survivor benefit . They can be used to put cash in your pocket . They can be used to offset the cost of another policy . Lastly , whole life insurance is for disciplined people . In order to receive all the benefits named above , you need to stick to the payment schedule . It 's a fixed-premium product and will not tolerate underfunding , or over funding , or skipping payments . If you realize the bang for the buck you can get with whole life insurance , and have the discipline to stick to a premium payment schedule , then you 'll be glad you bought this policy . 