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I think that's the technical way of referring to Whole Life (or other products like universal life)? I have a policy with PennMutual. I like it. I wish I would have found a fee only person to help me structure it, that's my only complaint.
It is a complex product with a bajillion ways to configure it, so due diligence and/or good advice is key.
What I hear a lot is "properly structured high cash value whole life with a mutual company" can be an excellent tool as part of a well-thought out holistic wealth building plan.
Re-read that paragraph!
The devil is in the details. Before you buy, talk to at least one Nelson Nash 'certified' person (I don't know how they accredit them but they are kind of the pioneers of doing this the 'right' way).
For me, what I like about it is:
..a forced savings mechanism
..liquid and available to me in the near term
..Totally Uncorrelated to all other assets
..150 years of durable history paying dividends
..ca 5% growth*, most of it guaranteed
..*tax free growth
..break-even after a few years if well structured (so if you don't like it, you only lost some time, not your principal, and could just call it 'paid up' and let it sit there with no further premiums due--IF well structured)
..life insurance forever (as long as you maintain the policy) regardless of your future health changes
..continuous compounding at >High yield savings
..great place for emergency fund
..very good place for investment funds or cash for whatever life throws at you
..no 'lock up' period -- unlike qualified accounts
However, downsides:
..commissions up front (especially first year, but honestly I don't know if my guy continues to make money for years or how their comp is done), and pretty significant at that
..complex, open to bad actors putting you in the product that maximizes commission and doesn't optimize for your needs/wants
..complex, lots of riders and options
..complex, lots of funding 'windows' e.g. how long your base premium goes and how long your paid up additions go
..many policies lapse due to inaction, lack of payments, not keeping up, poor construction, etc
Right now, I'm 55, have had a policy for 5.5 years, paid 27k per year, have cash value around 160k, $1M death benefit, took a loan of $100k to buy a house and invest in real estate (5.3% simple interest), and it continues to grow--it's my entire emergency fund and safe haven and I'm going to keep max funding it. It's like 11-12% of my total available investment capital, and that all feels good to me.
I'm a contrarian to some degree - when everyone says "just max 401k and invest in VOO" or whatever, I think 'lemmings' - adding to my 70% already in qualified accts and trusting mr. market, the IRS, congress and our alarming deficits -- locking it away until 59.5 (I'm not that far away but still) -- trusting the laws and structures won't change, let alone tax rates??? that's all too much and I decided I really need a private contract & true diversity. GL!