When shopping for whole insurance policies don't get a shock when you see the sticker price. Whole life insurance rates are significantly more expensive than term insurance because your premiums are going towards the insurance policy and the investment portion of the policy.
Whole life rates can put this type of insurance policy out of the reach of many people who have families and other financial obligations. A young family might be wise to look into the rates of other insurance policies, which can offer a substantially lower premium allowing them to purchase adequate coverage to protect against the loss of income. If there are still funds available to set aside for investment purposes a mutual fund, money market account or other invest vehicle could fill that purpose. The saying is, "Buy term and invest the difference."
The benefit of a whole life policy that is purchased when still relatively young is that as long as the premiums are paid your rates will not go up, and you cannot be canceled due to health issues or age. Many whole life plans have a termination date, usually 100 years old, wherein the whole life policy is paid in full to the insured. If you buy-in young you will take advantage of cheaper rates, which can make a big difference considering the expensive nature of the premiums as opposed to term life insurance.
Age is only one consideration when determining the rate that you will pay for a whole life policy premium. Different categories based on your overall health and lifestyle will classify you in certain rate categories. If you are a healthy non-smoker you will receive the most favorable rates. (Smokers typically pay more.) Any riders or extra features you add to your basic life insurance policy can affect your premium rate for your whole life plan. You might have the option to provide additional coverage for your spouse or children, a rider to protect you against becoming disabled and an extra death benefit if you were to die due to an accident.