Regional Marketing Director, Capital Choice Financial Group,
As a financial professional in the business for over 20 years, I don't recommend whole life insurance in any form to my clients. Instead, I believe in level term life insurance which will provide enough cash at death to cover all debt including the mortgage, final expense, and education for the children. Because of the tremendous savings with the purchase of tem life there is more money to put toward paying down debt and investing for retirement. Going back to the word "custom" in the question, I really customize a financial plan that is unique to the individual or family beginning with life insurance as the foundation of that plan that will protect the assets as they grow. The need for life insurance will always decrease as the years pass.
Whole life insurance is excellent. Question to you, the reader: have your investments (Stocks, bonds, funds, 401(k), whatever) grown, and if so, in a straight line? Those down years really rip apart the fabric of "buy-term-and-invest-the-difference", don't they?
A poorly understood function within the insurance-sales arena is/are the actual workings of whole life. To be sure, there are different types and qualities (and features) within the category of whole life; but a good Mutual company, with a strong rating, structure and history can be your best friend. The premiums you pay (many balk at the size) go to both the cost of the death benefit, and also to a growing cash value, and the policy grows (in both death benefit and cash value) over time. Once the cash is in the policy (year-after-year), the only way it goes down (for example, in a down market) is if you do something to change it. The consistency of earnings offered within these has an extremely important result in your financial planning. Further, the cash is accessible to you, while you're alive, in a tax-beneficial way!
Next question to you: Do you understand "arithmetic average"? That is used by Wall Street to glorify results of investments. Down markets and negative results eat up your cash. All of us are going into the "distribution phase" of our lives at some point. The money we have in our accounts will be used for our retirement, distributed as we need it. It is very important to recognize the difference in results now, and especially what it will mean for us later...volatility is not your friend, "meaningful" consistency is.
Last question: Do you want the life insurance to be there when you die? Whole Life insurance is permanent, and will be.
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A poorly understood function within the insurance-sales arena is/are the actual workings of whole life. To be sure, there are different types and qualities (and features) within the category of whole life; but a good Mutual company, with a strong rating, structure and history can be your best friend. The premiums you pay (many balk at the size) go to both the cost of the death benefit, and also to a growing cash value, and the policy grows (in both death benefit and cash value) over time. Once the cash is in the policy (year-after-year), the only way it goes down (for example, in a down market) is if you do something to change it. The consistency of earnings offered within these has an extremely important result in your financial planning. Further, the cash is accessible to you, while you're alive, in a tax-beneficial way!
Next question to you: Do you understand "arithmetic average"? That is used by Wall Street to glorify results of investments. Down markets and negative results eat up your cash. All of us are going into the "distribution phase" of our lives at some point. The money we have in our accounts will be used for our retirement, distributed as we need it. It is very important to recognize the difference in results now, and especially what it will mean for us later...volatility is not your friend, "meaningful" consistency is.
Last question: Do you want the life insurance to be there when you die? Whole Life insurance is permanent, and will be.