Please help me understand whole life insurance. Touted benefits are cash value and providing an inheritance to your children but many people think it’s a scam without the payout. Why?

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Our financial advisor has us carrying a whole life plan. It’s a lot per year, but kind of like a forced savings. And you do get it back later if you don’t die, plus interest at a pretty good return. If you do die, it’s a large payout. In general it’s part of our retirement savings plan with the bonus of extra protection if husband croaks prematurely.
The other advantage, at least for our plan, is it covers disability care like an Aflac type thing.

Clarifying that term only pays if you die before the end of the term, if you don’t, they keep the money. Perm/whole life pays out your money at the end either way. But it is a LOT more expensive. Like 10x.

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Whole life insurance means it will still pay out after you turn 65, which is when term insurance expires. However, it’s more expensive. So we have a big term payout in case we die before our kids are grown, but only a small payout for whole life so that funeral costs and other basic stuff is covered. For an actual inheritance, you’re better off with a good savings account.

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