This is a bit similar to a Term Life Policy except you purchase a policy that will cover your "whole life" not just a set period of time. Hence the name Whole Life Insurance. Your premiums remain constant throughout the life of the policy and the company invests a portion of your premiums.
In most cases you build up equity in the policy, which over time can turn into a significant amount of money. This money can be used to pay for college or help with your retirement.
Some reasons why to purchase Whole Life Insurance