Whole life insurance can be purchased as an investment.  It can be a very good investment in the long run.  But, financial advisors are not recommending this as the only means of investing your money.  Whole life insurance builds cash value over the years giving an added benefit to an insurance that is needed for the protection of your family.  As in any other investment the cash can be drawn out and used if needed.  However, it may not be as quickly accessible in an emergency as some other form of investment.

There are a few different options to consider when you are ready to purchase a whole life insurance policy.  If you have a large amount to invest, a single premium policy will allow you to make a large payment at the time you purchase the whole life insurance.  You benefit by the same cash value accrual and tax shelter as the other options.  Or you may choose to go traditional.  This will give you a set amount of return on the cash value.  Finally, interest sensitive policies have a variable interest rate, which of course allows for fluctuation of cash value.

Whole life insurance is also valuable because it can protect your assets.  In the event of the death of the policyholder, say a husband or father, whole life insurance will offer protection to property and finances.  The insurance will cover bills or debts accrued and lost income so property or other assets will not have to be sold to pay expenses.  Because of the coverage of whole life insurance, property will be able to stay in the family and not have to be sold.

Whichever kind of policy you choose will be determined by your budget and how you wish to invest your money.  Before making a choice for whole life insurance, carefully consider the needs of your family both now and for the future.