1. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    Yes, whole life insurance can pay for itself at a point if set up properly. There are 3 ways to set premiums for a whole life plan. They are minimum premium to keep it in force, target premium to have full use out of the cash value and maximum premium which keeps the policy from becoming a modified endowment contracts.

    So if your whole life is set at target premium, at some point you will have enough cash value to have "paid up" life insurance for your life span.

    Whole life policies can be tricky, I recommend using a trusted life insurance broker to avoid common mistakes.
    Answered on September 4, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A whole life insurance policy pays a death benefit that will almost always exceed the amount of the premiums paid. A whole life policy may develop more cash value than the premiums paid after several years. However, a whole life policy is not an investment contract which might double or triple in value and recover the investment.
    Answered on September 4, 2014
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