<prompt> Human: I make 75,000 a year. I am investing 20 of my salary into a pre-tax 401k program, and I have 10,000 saved into an emergency fund, with 50,000 already in my 401k. I opened a whole life insurance policy through Northwestern Mutual 2 years ago, and have been paying 200 a month into it. It was sold to me as an investment, bond like vehicle in the future. Im far from the break even point where the cash value is equal to what Ive put in at this point. Currently the cash value is around 2,000. I figure it wont be until year 10-12 that the dividends are able to pay off the yearly premium. However I was reading my statement from 2016, and Im not even sure if the dividends are only being paid towards the premium, since the document states that the dividend was used to increase cash value and coverage. Is it worth keeping this policy? I want to start saving for a house, and I dont see the benefit of keeping it, as I think I would be better off putting that 200 a month into an index fund like Vanguard. I actually tried cancelling it previously but my insurance guy talked me out of it, they are pushing it as money I can use when I retire. Any opinions Reddit?  <response>: Cancel it. Whole life is not an investment. If you need insurance than buying insurance. Just buy a Term Policy for the time and amount that you need. Youll pay a fraction of what youre paying now. For example, my wife and I have a half million dollars on each of us for 10 years. The reason that we have this is because we have a liability of three rental homes. If one of us dies the other can pay off the remaining balance of those rental properties and also possibly our primary residence. With Investments that we have already and with the policy this would not be a problem for either one of us if we happen to pass away. Our policies cost us roughly 35 each a month. I hope this helps. Take care. 