@bluebrown (All from an Ontario, Canada perspective)
Sure. Now, keep in mind Term is the right product for 90% of people. Whole Life is great for those that have maxed out their TFSA/RRSPs/FHSA, but especially for the self employed.
Let's use you as an example.
You're a lawyer, you gotta make pretty good $$$.
Let's assume you work for yourself. You would be incorporated, right? Of course!
So, because you have a savy accountant, and are quite smart yourself, you have a holding company.
Now....
Assuming you live in Ontario, your personal tax rate is going to be 53%. So you're going to take what you need and leave the rest inside your Operating company. You may invest within your Op Co, but remember all growth is taxed, and then taxed again when brought into your personal accounts.
So where Whole Life makes a ton of sense is this.
Let's say you're 35yo.
For a $1,000,000ish face value policy, you'll need to deposit $50k/year. Think of it as hiring an employee that isn't going to cost you employer taxes, won't cause a lawsuit, doesn't need a Christmas party, and will continue to make you money for life while providing a service of a death benefit.
You'll make this deposit for 4 years, and then the policy will live off of its dividends.
Year 1/age 36: 48k cash value, 1.38 mil death benefit
Year 5/age 40: 231k cash value, 1.78mil death benefit
Year 15/age 50: 363k cash value, 1.45 mil death benefit
Year 30/age 65 643k cash value, 1.32 mil death benefit
Year 40/age 70 781k cash value, 1.36 mil death benefit
The program is held by the Hold Co, allowing for tax free transfer of funds from the Op Co, to the Hold Co. Insulating the company owner from any creditors and lawsuits.
So, money that would otherwise be taxed HEAVILY when trying to get out of the one pocket and into the other is given a tax free growth environment that only required 4 years of contributions. This money is then accessed by leveraging it a lending institution. When invested you can write the interest off. It does not impact your borrowing power, and is seen as an asset.
Could you invest it in the market? Sure.
Is your crystal ball better than mine? Not sure.
Life Insurance is subjective. It's a love letter to some and a financial tool to others.
If you're hellbent that this is wrong and you can make more money elsewhere, then the please, go and do so.
Some people want the security, and that's not free.
The biggest thing to remember with permanent insurance is that you are EMPLOYING A SERVICE. I feel that gets lost when the discussion arises. Nothing is for free.
Yes term is cheaper when young. But is it really worth spending 5-8k (and more) a year when you're in your 50-60-70's? Even getting a small permanent plan in your 30's and having it structured to support itself will be of value later in life. Commonly used for final expenses.
If this does not satisfy, then I fear your mind is already made up. Whole life has a purpose, and it's very useful when structured correctly.