Is Whole Life Insurance A Good Option? 
The answer to any financial question should always be prefaced by `` it depends on the need of the individual '' . That said , there are significant benefits for someone who owns a whole life participating policy . Whole life , a form of permanent life insurance , features guaranteed premiums , death benefits and cash value . Whole life policies also give you the potential to receive dividends which can increase the value of the policy or provide an increased death benefit for beneficiaries . Unlike term , the death benefit will last your entire lifetime and the monthly premium will be locked in at the date of policy inception according to your `` rating '' . So , if you are 35 and get rated `` Preferred Non-tobacco '' that will give you a monthly premium that will not change for your entire life , regardless of any health issues - as long as your premiums are current . The second important value of whole life insurance is the accumulation of cash inside the policy on a tax-deferred basis . Over time , the cash value increases can be significant and you can borrow cash from your policy at a favorable interest rate . Many people have used this as a source for college funding or even a retirement income stream later in life . These policy loans are generally tax free . There is a lot more to Whole Life policies that can be addressed when considering your personal situation and I would recommend contacting an independent insurance agent that can review your particular needs and situation . 