Buying whole life insurance can make sense for a lot of different reasons. If you need a death benefit to leave to loved ones that lasts your "whole life" certainly this product can accomplish that goal. Whole life is the Swiss Army knife of life insurance plans. The cash value can be used for anything from critical illness money to children college funds to retirement funds. I recommend sitting down with an independent life insurance broker who can help you decide if whole life, universal life or term life will best accomplish your goals within your budget.
That is an excellent question! There are several reasons why buying a whole life policy makes sense. One reason is the security of knowing that no matter what happens during your life, the policy will protect those you love. If your health takes a turn for the worse, your coverage remains. It can't be cancelled by the company for any reason but underpayment, in most cases, and you are covered as long as you live.
Another advantage is that the premium price is fixed, so the younger the age of person insured, the cheaper the policy. And that price doesn't increase. My policies still cost me less than $10/month, and I'm a whole lot older than I was when my Dad bought them for me.
Yet another is the fact that the payout is known, guaranteed, and left behind as a tax free, probate safe (almost always) benefit for your loved ones. The financial people that advocate "buying term and banking the savings" can't guarantee the same results unless you are 'lucky' enough to pass while your term policy is in effect. And since statistically the vast majority of Americans can't save money, it truly does make sense to have a 'forced savings' plan like a whole life policy.
Lastly, the policy over time builds cash reserves that can be borrowed from should they be needed. These policy loans are typically low interest and quickly done, with very few steps.
I'd ask that you meet with a good independent agent and discuss with them your exact needs for the policy you are looking for; they can help you find the policy that will suit you best. Thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Owning whole life insurance is a wise decision. The next closest rival is term life insurance and companies don’t issue term life insurance policies that extend out to life expectancy. Term life insurance policies rarely pay their death benefit. Whole life insurance has tax advantages not enjoyed by other financial assets. It has legal advantages. It has financial advantages. Term insurance cannot offer the major advantages because of its limited duration. If the consumer has needs that continue for the remainder of their lives then whole life insurance is the answer. My experience is that as people advance in age they find more uses for whole life insurance, not fewer.
Owner/ Partner, Bynum Insurance Agency, Inc, Clayton, GA
The question to ask yourself is how long you are going to need the coverage. Me personally, I sell more term insurance than whole life and now that companies offer term insurance to age 121, the issues with losing your coverage does not exist. When I quote life insurance it is term and lifetime term. I do feel that whole life is a good vehicle for life insurance trusts where the premiums are gifted and reduces the taxable estate. I recommend life insurance for the death benefit and not for retirement.
Manager, Marindependent Insurance Services LLC, California
Thanks for the question.
Whole Life Insurance is Extremely complicated. Far more complicated than many insurance agents are either willing to admit or understand. As with anything you are going to want to read the actual policy before you purchase it. Understand that likely you will be signing up for premium payments for most of the rest of your life.
Whole life can make sense for some people, but I no longer believe that it is the best form of life insurance for the masses. If you are able to qualify for Term Life Insurance, that is often the best initial life insurance purchase.
.JPG){kind=avatar}
Another advantage is that the premium price is fixed, so the younger the age of person insured, the cheaper the policy. And that price doesn't increase. My policies still cost me less than $10/month, and I'm a whole lot older than I was when my Dad bought them for me.
Yet another is the fact that the payout is known, guaranteed, and left behind as a tax free, probate safe (almost always) benefit for your loved ones. The financial people that advocate "buying term and banking the savings" can't guarantee the same results unless you are 'lucky' enough to pass while your term policy is in effect. And since statistically the vast majority of Americans can't save money, it truly does make sense to have a 'forced savings' plan like a whole life policy.
Lastly, the policy over time builds cash reserves that can be borrowed from should they be needed. These policy loans are typically low interest and quickly done, with very few steps.
I'd ask that you meet with a good independent agent and discuss with them your exact needs for the policy you are looking for; they can help you find the policy that will suit you best. Thanks for asking!
Whole Life Insurance is Extremely complicated. Far more complicated than many insurance agents are either willing to admit or understand. As with anything you are going to want to read the actual policy before you purchase it. Understand that likely you will be signing up for premium payments for most of the rest of your life.
Whole life can make sense for some people, but I no longer believe that it is the best form of life insurance for the masses. If you are able to qualify for Term Life Insurance, that is often the best initial life insurance purchase.