When Does Whole Life Insurance Make Sense?

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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    When does whole life make sense?   While I would like to say "anytime", I can't. Whole life makes sense when it has time to work. 20+ years and a whole life is an excellent product, probably the best you can do long term. However, when you have limited your time by waiting till later in life to purchase life insurance, the cost of whole life can be prohibitive. Then a GUL (guaranteed universal life) starts to make more sense as it can provide lifetime protection at a set stable cost that would be less than Whole life. Whole life still could be a possibility, but usually the cost is up there.
    Answered on June 13, 2013
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    David RacichPRO
    Fountain Hills, Arizona
    For conservative long term savers, participating whole life can be an excellent retirement income alternative or supplement, especially if you design the policy with the lowest base amount in tandem with a term and a paid up addition rider. But for death benefit planning scenarios for indemnification and inheritance, guaranteed universal life is the cheaper option. 

    Answered on June 13, 2013
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    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    it will all depend on your objectives and what you are looking for insurance to do for you. Many people purchase whole life insurance for a variety of reasons including (1) level premiums with no change (2) can last your whole life (3) builds cash value over time. When these are factors in your decision to purchase life insurance it would be wise to consider whole life. There are those who believe whole live never makes sense and those who believe it is all that makes sense. Those opinions tend to focus more on commissions to agents and product offerings of the carriers they represent. You need to examine your own situation, hear the pros and cons of the various types of insurance and make an intelligent decision for yourself. Your future financial health will depend on it.
    Answered on June 14, 2013
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