I just read an article about whole life insurance (or universal life) that talks about whether whole life still makes sense. This is one of the better and most balanced articles I’ve seen in a long time on this subject of life insurance and what type of life insurance to buy. Important points brought up in that article include: There’s still a place for whole and universal coverage, but by no means is it for everyone.
The chief advantage of permanent plans, also known as cash-value insurance, is that they are, indeed, permanent; they last until you die while term coverage lasts for 10, 20 or 30 years and the price can skyrocket when you try to renew.
If you have a child with special needs who will require care long after you retire or expect a large estate tax bill, a permanent policy could come in handy, says Kimberly Lankford, a contributing editor at Kiplinger’s Personal Finance and author of The Insurance Maze.
People are also living longer these days and you may want coverage well into your old age. At that point, buying term life becomes very expensive while whole life premiums stay the same forever.
(And the most important point of all:) Above all, the most important thing is to buy enough (life) insurance, regardless of what type it is.