Is it worth it for me to buy whole or term life insurance?

I am a woman in mid 30s with a mild autoimmune disorder. I have an offer to purchase $3 million whole life policy with a monthly premium of almost $4,000. I was previously denied coverage due to the autoimmune disorder.

I currently earn $400k and the number will likely increase dramatically in the next 5 years, likely to $650k or $750k. I have a two year old and one on the way with my husband, who currently earns $400k. We do not have much in net worth currently, about $1mil, but could build another $1 million of net worth through savings and asset growth over the next 10 years relatively easily. We live in a very high cost of living city in the US.

I don’t have a sense whether it is financially reasonable for us to purchase this policy, or maybe I should purchase term life instead just to cover my working years. Is there value to the whole life that makes the premiums worth it? As I understand it, whole life helps me build “equity” that can be borrowed against, whereas term would not. Also, I can’t tell if this is an egregiously high premium or if it is reasonable given the amount of the policy and my autoimmune disorder.

I appreciate any insights as I can’t be sure if our broker is just trying to take advantage of us. Thanks in advance.

submitted by /u/MapTechnical626
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