The policy gives me some options (and my family).
1) If I die, my wife gets 310k tax free (250k + accumulated value of 60k) TAX FREE! (I also have 1mm policy TERM).
2) It has accumulated wealth and I could cash out NOW and get 60k (taxable)....so if I get a divorce I can either name a new beneficary or buy something stupid with 60k.
3) Also, it has accumulated enough value that its own dividends cover the premium (i don't pay anymore).
4) Also, I can borrow against its cash value of $60k (albeit at a rape-level rate of 8%)....but hey, credit is there!
Basically, it gives me OPTIONS. I dont need the money, I love my wife, and I don't plan on dying so I'll just let it grow for her.
I also bought a 1mm term policy from United Healthcare. Wife gets a flat 1mm from that policy TAX FREE, but I can't borrow against it and cant cash it in. Its for only when I croak.
As for my kids, I purchased the same policy for them. 250k whole 65-life. Still paying premiums on those! No one wants their kids to die, but we do buy them insurance for giving them OPTIONS. Its simply an investment option for their future spouses and will give them borrowing options in a couple of decades such as buying a house or for college if tough times hits.
Hope this helps.
From your post it seems like you need some sort of trust set up for you and maybe an annuity if you are suitable for it (I hate annuities and can do the same with different types of securities). Buying insurance for your kids to benefit you? You'll have to see if such a product exists and, again, if it is suitable for both your kids and you.
Take care.