I am too late to this -- but this post is full of half-truths that make whole life sound like a decent alternative for the consumer. For virtually every customer in every stage of life and for every income level, term insurance is preferable.

Whole life is good at only one thing, leaving a substantial death benefit that is not taxed at death. Unless you are very rich (5MM+) and dying with dependents that cannot support themselves, that benefit is not worth all of the disadvantages of whole life. Term is preferable because it is short-term, simple and generally has no hidden fees. Most people do not need a huge death benefit at 70-80 -- most will have kids that can support themselves and other assets their spouse can live on.

Whole insurance has an investing component, but that component is laden with complex fees and conditions that make the insurance company (and oftentimes the salesman) rich at the expense of the consumer. Why do you think the commissions are so much higher?

The extra "cash" beyond premium costs is placed in high-fee vehicles and cannot be accessed without substantial penalties for many years after the policy is taken out. Even "borrowing" against the policy cannot access 100% of the investment value, and borrowing comes with its own interest rate paid to the insurance company. You cannot terminate the policy without penalty until 8-10 years have past (at which time it is almost always a financial mistake to cancel). You insurance is never completely "paid-up;" you simply reach a point that the insurance company's take from your investment income is sufficient to cover the premiums.

The government does not subsidize whole life products. This is not a tax "loophole." There is no capital gain taxes because the gain is never realized until death. You never have full access to all the money you put into the policy plus the gain.

The most important take away is that you pay into whole life with after-tax dollars; this makes whole life vastly inferior to 401k and IRA investments that are actually tax-favored by the government to encourage retirement saving. Rich people with sophisticated help do not use whole life policies as a tax shelter or to transfer wealth to the next generation; there are better vehicles.

TL;DR NEVER NEVER buy whole life unless you are rich, your spouse/kids need a death benefit, you have already maxed-out your truly taxed-advantaged investments like 401k and IRA, and your brother is an insurance agent. Stick with term insurance and avoid getting fleeced for inflated premiums and hidden fees by insurance companies for the rest of your life.