Whole life insurance is frequently advertised as a dual-purpose financial product that offers life insurance protection as well as savings. That might seem like a slip of the tongue — but for many consumers, it could be an expensive mistake. But before you even think about a whole life insurance policy, you need to understand how that product works, along with the downsides.

What is Whole Life Insurance?

Whole life is a type of permanent life insurance that remains in force for the insured's entire lifetime, provided premiums are paid as required.