Whole Life Insurance is a life insurance policy that remains in force for the insured's whole life and requires premiums to be paid every year into the policy in most cases., It is a a permanent policy that remains in effect from the day you purchase it until you die, as long as premiums are paid.
Its main feature is ‘Level Premium, Level Benefits’. In other words, once you purchase whole life, you will pay the same amount of premium and receive definite death benefit for the duration of the contract.
The advantages of Whole Life can be that there are guaranteed death benefit, guaranteed cash value, and fixed premium and so forth. Regardless of the fluctuations of stock market, there is no burden with inclination of insurance premium for the duration of your payment period, and accumulated cash value can be accessed through a loan or a free withdrawal. If you don’t pay the loan back, the value of death benefit will be reduced, and if dividend is reinvested in the policy, the death benefit may increase.
Internal rates of return for participating policies may not stay more stable than universal life and interest-sensitive whole life whose cash values are invested in the money market and bonds because their cash values are invested in the life insurance company and its general account, which may be in real estate and the stock market.
Keep in mind that Whole life insurance is relatively "Stationary" compared to Universal Life. For example, regulating face amount is impossible upon signing the contract. If you want to increase the amount, the additional insurance and additional costs will be needed, and registered verifications should be accompanied.
As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred.