<prompt> Human: I was presented the option of investing whole life insurance and pretty much went through a sales pitch. If I understand it correctly, it just seems almost like investing in a privately owned insurance company that pays dividends with some tax advantages over a 401K and other perks.Id like to hear the otherside of it, why it might be a bad idea. For some background, my financial situation is stable. No debt, probably not saving as much as I should but I can deal with a financial crisis. I currently put 18 of my income into a 401K, and this is potentially where I would draw the money so like 10 in 401K and 8 into whole life insurance. At the same time, I was thinking of putting some additional funds into riskier investments.I should mention that Im only interested in the investment side of it. The peace of mind factor from having the whole life insurance is negligible to me since I dont plan on dying anytime soon nor do I have any benficieries to be concerned about financially.  <response>: Never mix your investments and insurance products, and never buy anything but term insurance. What youre signing is a complex contract with a bunch of hidden fees that even the agent probably doesnt understand. Ultimately, after taking a good bit of your premiums, the insurance company invests the rest in the same real investments mostly bonds that you could invest in. Financial happiness comes from hanging up the phone when the insurance salesman calls. The best products index funds, for example arent sold to you - there isnt enough profit in them for that. 