Whole (or permanent) life insurance protects you and your family from financial loss due to death. The policy protects you for your entire life, no matter how long you live. This type of life insurance is more expensive in your younger years but is usually less expensive during your golden years. Your insurance payments on whole life policies have two main purposes: (a) to protect your loved ones from financial loss if you passed away or became terminally ill, (b) to create a built-in money saving account within your policy. This is money you can borrow from yourself [while you are still living] in order to pay for medical expenses, buy a house or pay college tuition. With some whole life policies, the insurance company will even pay you handsome interest on the balance of your cash value. Whole life is said to be suitable for seniors. Universal whole life is also suitable for younger people seeking safer investments opportunities with special tax advantages.
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