When you should sell whole life insurance is when there is a permanent need and the client can afford the coverage needed as whole life. Whole life insurance does not require as much management as a Universal life policy and is perhaps for the more conservative clients.
The important thing to do is to cover the needs with what they can afford. You can always covert to whole life at a later date as the client can afford it.
Participating whole life is often thought of as "top on the of the line" with it many features. With non par you get fully guaranteed coverage and lower premiums than par. As always it is a balance between desire, need, and affordabilty
President | Founder, CLM Insurance Group, Delray Beach, FL
The beauty of whole life insurance is the actuaries design the products to reach their full potential if taken out at day one. Whole life insurance (particularly participating whole life) from mutual insurance companies can serve as an outstanding savings and investment vehicle for newborns. Paying into a policy from the moment your born can provide great options later in life.
I recommend this to all of my clients in small amounts. Usually $100 or $200 a month will buy a reasonable death benefit and build an excellent cash value over the course of 20 or 30 years.
As an agent the best time to explain a whole life policy is when the person needs a permanent solution. I personally like to mix some lower face whole life at a reasonable premium and use the more affordable term life policies to round out the estate. Whole life is the "Swiss Army Knife" of life policies as it has just about rider to make the right combination for your client.
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The important thing to do is to cover the needs with what they can afford. You can always covert to whole life at a later date as the client can afford it.
Participating whole life is often thought of as "top on the of the line" with it many features. With non par you get fully guaranteed coverage and lower premiums than par. As always it is a balance between desire, need, and affordabilty
I recommend this to all of my clients in small amounts. Usually $100 or $200 a month will buy a reasonable death benefit and build an excellent cash value over the course of 20 or 30 years.