It's been a while since I deep dived into insurance questions, and I wanted to use this post as a thought exercise.
This is not advice to the OP given:
-- the OP has cancelled it already, and
--has zero need for life insurance, term or permanent, present or future, EVER, and
-- the "protection from creditors" benefit is low to nil if you are not in debt / not an entrepreneur, and
-- is not looking for another (expensive!) retirement vehicle with tax sheltering advantages
-- doesn't have a child you could roll it over to for their college costs on a tax preferred basis and
-- is already an active investor that will do something better with the money to make it grow, not just spend it now.
-- Is not looking to extract cash temporarily (you have the option to keep it "invested" at 5% (minus insurance) and borrow against the premium.)
But mainly because OP had zero need or use for life insurance - large assets, no dependents, doesn't care to leave an estate / donations, etc.
The other posters are correct, whole life is two products in one :
an investment product + life insurance,
in a tax-advantaged, held outside of the estate, held outside of reach of creditors, product - typically with massive front loaded fees in the first 5+ years... although the fees can continue longer depending on how it is structured.
Investment
Am I correct to assume that this is considered to be approx $20k cash surrender value, with a guaranteed 5% rate of return?
Then it earns at least $1k/yr. maybe more or -- at least 5% return, guaranteed -- which is a heck of a lot better than the ETF Bond market right now.
OR -- at death (assume age 86, life expectancy), Future Value will be at least $171,000 in 44 years, BUT! it looks like 1/3 of the returns are funding the life insurance, so your return guarantee is only 3.5% if you don't value the insurance. Still a bit better than ETF Bonds
If held until death, your actual death benefit of $360,000, represents a 6.8% guarnateed annual rate of return. (death in 44 years). Which is pretty damn awesome except you can't use the money after you are dead.
NOTE:
Today's cash surrender value may have a portion that is taxable and a portion that is not taxed... so you may end up with less upon redemption than $20k, AND you do have to pay taxes on the growth if you put it into a non-registered account.
Note, the $360k death benefit is NOT TAXED.
Insurance
Let's assume you are approx 42 years old, male, nonsmoker and compare this insurance to the cheapest term insurance (that increases its rates every 5 years, guaranteed renewable, but not a fixed rate guarantee for your life). Why? Because that this the cheapest life insurance, especially for people who need life insurance for a while (10-20 years, while children are dependent and assets are low), but won't in future when their net worth is much larger, children are on their own.
Insured through whole life for: $360k, $27/mo x 12 = $324/yr
Rates paid at the company I use: $2.18/mo per $25k=$376/yr.. (If you were 46 to 50 this goes up almost double).
Cost of your insurance $28/mo x 12 = $336.
On the face of it, these are very good rates for the insurance. Especially if your monthly premiums never increase.
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One last thought..
My mother bought a tiny permanent life insurance policy when she had her first child, face value of approximately $14k, I believe. She paid the tiny monthly dues (<$6/mo?) until the CSV equalled the face value, and received her letter "no more contributions are required" 35 years later. Let's guess she paid $72/yr x 35 yr = $2520 in total.
The life insurance company offered scholarships to insurance owners, their children and grandchildren.
Both I and my daughter each received $8k in scholarship money, (after the policy was 20 years and 45 years, respectively) for $16k total. AND the $14k death benefit (and its Cash Surrender Value) is still in effect.
Assuming she dies in 10 years, her return on her $6/mo investment will be 5.7%, plus "free" term insurance for 35 years.
So, if you have whole life insurance, please check out the other member benefits... like student scholarships.
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TLDR - check for scholarship benefits offered by your life insurance company.
TLDR - whole life insurance does not make any sense unless you actually need life insurance or have a very specific use case. But if you do, then policies already held for more than 10-20 years may have already paid the high fees, and may be competitive with self-directed investing and purchasing term life policies.
