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Have you ever heard the statements "Buy Term & Invest the Difference" or "Whole Life Insurance is a waste of your money?" 

I hear these statements all the time. 

But, here's the problem with those statements; whole life insurance has been used since the mid-1800s as an efficient and effective way to store, grow and pass on wealth.

So, why are these statements being said? The answer is simple: money.
Having people rent (you don't buy it) term insurance and invest earns large financial corporations significantly more money than people buying whole life insurance. 

This is not to say you should not rent term insurance, or invest your money. In fact, both can be great for your family, but so can whole life insurance.

I'd suggest that whole life insurance is the foundational piece of building strong household finances, and term insurance and investing should be complementary pieces to your financial puzzle. 

Let's walk through what whole life insurance does for you, and how these three tools work together in helping you build strong household finances. 

Whole Life Insurance:
People often think of life insurance as just a death benefit. This is true for term insurance but whole life insurance is actually a purchased asset - like a house - making it a great place to save and grow your wealth. 

Just like a house, whole life insurance (when structured properly) grows in value, but it does so more safely and reliably. The money earned within a whole life insurance policy is guaranteed. You can not lose it. However, unlike saving in a High-Interest Savings Account or in Guaranteed Income Certificates, whole life insurance will typically earn more than inflation year over year. 

Just like a house, your whole life insurance policy is a great leveraging tool, giving you access to cash to take advantage of great opportunities. However, unlike leveraging your house, using your whole life insurance policy puts you in full control of your repayment terms. 

And, just like a house, the value of your whole life insurance policy transfers tax-free to the next generation. 

Comparing Whole Life Insurance vs. Term Insurance & Investing:
Buying whole life insurance can not really be compared to renting term insurance and investing the rest, because they do very different things.

They aren't competing against each other, they compliment each other. 

Using Term Insurance, Whole Life Insurance, and Investing to Build Strong Finances and Generational Wealth:
Term Insurance will give you an adequate amount of life insurance coverage at an affordable rate while you are accumulating your wealth and raising a family, but term insurance is unlikely to pay and usually ends up being a necessary expense. 

Whole Life Insurance offers a permanent, increasing death benefit, but the cost never increases. This means you can buy some whole life insurance now at an affordable rate, and it can replace your term insurance coverage when it becomes too expensive.
Whole life insurance is also good for earning a stable and competitive annual interest rate, and for buying other assets which can increase your income sources. Finally, it's good for transferring money, tax-free, to your children and grandchildren, creating generational wealth. 

Investing is good for earning higher potential returns, but there's a risk of losing money, and you could easily earn more through your whole life insurance policy, if you're invested in a poorly performing investment portfolio or all your investments are in taxable accounts. 

Buy Term Insurance, Buy Whole Life Insurance, and Invest. Do all three. They are not competing.
They, together, offer you everything you need to be financially secure and independent.