Whole-life insurance policies have both a savings and a death-benefit component, as opposed to less expensive term-life insurance that offers only a death benefit. More Americans are purchasing these policies because of their modest but steady return rate. The downside to these policies include higher monthly premiums, high surrender charges, a dependency on the vitality of a single insurance company, and a lengthy investment period until a gain is realized.
See M.P. McQueen, Fusty Insurance Lures Buyers Seeking Safety, Wall St. J., Mar. 29, 2009.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
