What are some pros and cons of whole life insurance?
Pros:
Predictable, in most cases premiums are fixed for the life of the insured.
The beneficiaries receive the death benefit no matter when the insured dies, as long as premiums were paid.
The policy may build up cash value, which grows tax deferred.
If you surrender the policy at a later date, the cash value, if any, will be returned to you.
If you stop making premium payments you can receive the cash value or use that cash value to provide a paid up insurance benefit. The company must provide either extended term insurance coverage or reduced paid paid-up coverage. While it is not required that both options be offered many companies do make both available.
Cons:
A more complex product than term life insurance.
Higher premiums than term life insurance.
Could be costly if coverage lapses early