Insurance Advisor, Lordship Insurance Services, California
Whole Life Insurance is not bad. It depends on who you are talking to and why they are saying that.
WHole life provides a service. It gives a client a steady, non chaning premium each month; it can last till age 100; it builds cash flow. It is what is called permanent coverae. Unlike term insurance, it doesnt change as you get older.
Whole life is also very useful in providing key man insurance (insurance a company buys on top performers) and for those who may want to pay on their policies for a few years and then end up with a paid up policy. There can be many benefits to owning a whole life policy.
Sadly there have been those in the marketplace selling and pushing only term insurance. Statistically people do better saving money as they pay their premiums on their insurance instead of "investing the difference"
The only way to see which policy works in your bet interest is to meet with an agent who is not trying to sell you insurance; rather meet with an agent who is working to provide you with the best insurance option for your particular situation and life goals; you will be very happy you did!
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why is whole life insurance bad? Because I have something else to sell you or I haven't actually reviewed whole life because I am too lazy to learn about it as a product. Or my favorite, since the IRS created the MEC provision back in the 80's which created a situation that if you put too much money into a policy, the tax advantages changed. Up until then, your local neighborhood stock broker would sell you life insurance as an investment as it's qualities were very attractive to investors.
Besides common sense tells me that insurance companies price their products based on the risk they bear providing insurance in every and I mean EVERY product they sell. Why would whole life be different? Why would it be the "only" product with a higher price that is "bad" for the insured?
Whole Life Insurance isn't bad, but it may not be the most economical way to protect your beneficiaries. If the financial need is temporary then term life insurance with a conversation provision is the way to go. If the financial need is permanent, then guaranteed universal life is generally cheaper. However for tax advantaged income, participating whole life with a maximum term and paid up addition riders, could provide retirement income for a long haul conservative profile saver.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Whole Life Insurance is GOOD! It's not bad! In fact it's NEVER bad! I like what Larry said above here..."Whole Life is bad because I want to sell you something else"... which in fact is an illegal practice called "twisting". So if that's the case and the reason you asked this question you should tell the person that told you whole life is bad that you're thinking of reporting them to the Insurance Commissioner!
Even when people have money enough to provide their families with a comfortable lifestyle for generations they still buy whole life insurance. There are many reasons why, including the guaranteed, tax-free growth of wealth.
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WHole life provides a service. It gives a client a steady, non chaning premium each month; it can last till age 100; it builds cash flow. It is what is called permanent coverae. Unlike term insurance, it doesnt change as you get older.
Whole life is also very useful in providing key man insurance (insurance a company buys on top performers) and for those who may want to pay on their policies for a few years and then end up with a paid up policy. There can be many benefits to owning a whole life policy.
Sadly there have been those in the marketplace selling and pushing only term insurance. Statistically people do better saving money as they pay their premiums on their insurance instead of "investing the difference"
The only way to see which policy works in your bet interest is to meet with an agent who is not trying to sell you insurance; rather meet with an agent who is working to provide you with the best insurance option for your particular situation and life goals; you will be very happy you did!
Besides common sense tells me that insurance companies price their products based on the risk they bear providing insurance in every and I mean EVERY product they sell. Why would whole life be different? Why would it be the "only" product with a higher price that is "bad" for the insured?
Even when people have money enough to provide their families with a comfortable lifestyle for generations they still buy whole life insurance. There are many reasons why, including the guaranteed, tax-free growth of wealth.