Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Participating whole life insurance, like any other product, has to be suitable for the purchaser. Participating whole life is a permanent product for ongoing financial liability exposure for the beneficiaries of the policy that features guarantees. If guarantees are important, then this type of coverage may be appropriate for conservative policy owners. Some conservative long term savers use participating whole life insurance as a supplemental retirement plan.
The two types of needs that are best suited for whole life insurance are:
1. People who need permanent life insurance
2. People who wish to make use of whole life insurance's cash accumulation capabilities. This is especially useful for those looking to diversify finances and add a conservative cash position to their holdings.
Some reasons to buy Whole Life insurance are: 1) it is easy to understand; 2) the payments are the same every month; 3) you can pay up the policy in a short time, if desired, so that no more premiums are needed; 4) it has cash value; 5) the cash value is predictable; 6) you can borrow from the cash value; and 7) the policy will not lapse if maintained properly.
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1. People who need permanent life insurance
2. People who wish to make use of whole life insurance's cash accumulation capabilities. This is especially useful for those looking to diversify finances and add a conservative cash position to their holdings.