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What is the internal rate of return (IRR) for a Whole Life Insurance product?

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1. It really depends on the company and how much and how they credit their dividend. But if you needed an estimate or approximate on average most companies if you take out the cost of what a term policy would cost then over the life of a policy the IRR should be about 6-7 %. Hope that helps.
2. The truth: Rate of return is around 3% or less. Why? First 3 years of the policy has no accumulation value. Interest rate charge on borrowing the cash value is around 6-8%. It kind of works like the bank. You put in money and then they loan it out or invest it. EXCEPT that if you want to use the money from your life insurance, you have to borrow it. That's why it's better to keep savings/investments separate from any insurance policy