Whole Life

Features of Whole Life Insurance

Permanent insurance with premiums that will never increase and coverage that will never decrease.
The death benefit is guaranteed, so you know exactly how much the policy will pay upon claim.
Perfect for people who think long-term and wish to have a plan that is not subject to investment gains or losses.
Has flexible cancellation options. You can surrender the policy at any time in the future and the current cash value of the policy will be returned to you.

You can choose to pay premiums for the rest of your life, or for a set period of time (ie. purchase the policy in a set number of payments). You can even purchase the policy in one single payment. The shorter the payment period the larger the discount you will receive.
Can add "Term riders": temporary additional insurance to meet short-term needs (eg. if the whole life insurance policy is for $100 000, but you need $500 000 coverage now, you can add a $400 000 term rider).
Can add child or spousal riders: additional insurance coverage on a child or spouse on the same policy.
Waiver of premium: a safeguard against losing your policy. If you have an accident and become disabled, you may no longer earn a high enough income to pay your insurance premiums. With the Waiver of Premium option selected, after 6 months of disability, the insurance company will waive all of your premiums so you do not lose your policy. They also refund the premiums you paid over the last 6 months.
If you decide to stop paying premiums at some point in the future, you have 3 cancellation options:

The current cash value of the policy can be exchanged to purchase "extended term insurance" for the same amount as the original whole life policy. From that point forward, your policy acts just like a regular term insurance policy (coverage ends when the term is over).
The cash value can be used to purchase “lifetime protection” with a smaller death benefit than the original policy. This benefit will stay in place for the rest your life.
You can totally surrender the policy, in which case the cash value is returned to you.

Saving additional money for retirement.
Estate preservation: as soon as you die, any property that has gained value while you owned it (except for the family home) is deemed "disposed of" and your family must pay the taxes. An insurance policy can help pay these taxes.
Charitable giving: leaving the proceeds of the policy to charity to provide a large tax deduction for the final tax return, or; If you want the tax deductions while you are alive, you can transfer ownership of the policy to your chosen charity while you are alive. This makes the premiums tax deductible but not the pay-out at the end of the day.
Charitable giving: leaving the proceeds of the policy to charity.
Enhanced buy-sell agreements for business partners: the partners take out insurance on each other to continue the business in the event of one partner's death, while simultaneously providing a retirement plan in the process.
Pension Maximization: a smart way to provide a pension for your spouse after you die. Instead of taking a reduced pension income, you can take the full pension and purchase a life insurance policy with the difference. When you die, the payout from the insurance policy can be used to buy an annuity, providing a life-long income for your spouse.