A plain-vanilla whole-life insurance policy involves monthly payments for life with a death benefit paid to the policy’s beneficiaries. For example, average monthly premiums for a $1 million whole-life policy are $660 for a healthy 25-year-old female and $765 for a healthy 25-year-old male. The respective life expectancies are 82 and 78 years.
For either sex, the total premiums paid are less than half the $1 million death benefit if the insured person lives until their life expectancy. Buyers can earn a return on their premiums…
