President, Lane Independent Agency, Southern California
Because you want to be sure that your life insurance will always be there, regardless of your age or your health. It can never be canceled. It can never increase in price. So long as you pay the premium, you are covered and your family is protected, forever. And as it appreciates in value, which Term will never do, you can even borrow against it for whatever you want, and keep the money as long as you want tax free. If you repay the loan, it will keep the same death benefit, if not, it will be reduced by the loan. As it grows, you can even use the proceeds to pay the premium. Thank you. GARY LANE.
That is a great question! There are a couple of reasons why a whole life policy makes sense. One would be if it is purchased for a young child. The price is locked in at that low rate for their entire life, and many companies will offer the opportunity to increase that coverage without any questions. The second is that the policy doesn't end, so there is no way that you can outlive it. Many senior citizens purchase the policy advertised on TV by the large senior citizen advocate company, only to find that it ends when they turn 80. Given that the average life expectancy is 84 for women and 82 for men, for many that is a terrible surprise to find that the policy ends, and that getting another one is too expensive, or not available due to their health issues. The third is that no matter how badly your health declines, you have insurance that can't drop you, or raise your rates. When your term policy ends, and you want to get another one, your age and health issues are re-evaluated when determining eligibility and price. Please feel free to contact me if you would like to discuss this further. Thanks for asking!
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why buy whole life insurance? Well I bought whole life for several reasons, maybe they apply to someone else, maybe not. Life insurance is a personal choice. I can only really tell you why I bought it over term. First, I planned on living as long as possible, term does not work if I do that. Then I like that the death benefit increased over time to help battle inflation. I liked that the cash values were mine to do with what ever I like with. I don't have to ask permission to take money out or put money back, it is mine to decide. I like that the price is locked in. I like that the insurance company cannot come back later and increase my costs. I have control.
I like that when my health changed and I became uninsurable that I had policies I controlled that they couldn't price me out of or change the terms of. They were mine, purchased when my health was excellent. Twenty years later, when my health went south, the policies didn't. I like that my cash values didn't count against my kids FASFA contribution count. I really like that in 2008 when my real estate, market investments all took a big dump on my portfolio, my whole life didn't go backwards in value. In fact that year it was my most profitable portfolio item. I like going to sleep at night knowing my policies will be there for my family if I do not awake, but I really like that these policies will not let me down or be subject to the extreme market ups and downs that the rest of my portfolio is.
This is just a few things I can mention. There are many many more but hey it comes down to what you actually want to happen, not what somebody else tells you what you should want. If it doesn't fit what you want, don't buy it.
That is a great question! There are a couple of really good reasons why whole life may be a better fit than a term policy would be. The first is that it lasts as long as you do, and your payments do not change. What you pay the day you buy it is the same you pay years later. Your policy cannot be changed if you have health issues, or taken away from you. The second is that if you need to borrow from it, there are no hoops or hurdles to jump through, it's your money, and they write the check and send it without credit checks, etc. The third is that as long as you keep it paid up, (and don't die doing anything illegal) you are guaranteed to receive the death benefit. It doesn't matter what is happening with interest rates or the market, you are getting the contracted amount (minus whatever unpaid loans you may have taken out). I hope that helps, thanks for asking!
Regional Marketing Director, Capital Choice Financial Group,
There is never a good reason to buy whole life insurance unless you are happy about having less insurance coverage that you will need or you like to give the agent and company a big commission. The best way to look at your insurance needs is to purchase a face amount that will pay all debt, mortgage, fund college expenses for kids and replace income for your beneficiaries. Remember, that in the early years when debts are the highest, there is a mortgage, and kids are still at home your need for more coverage is needed the most. But, when you reach retirement age and the debts are gone, mortgage paid, and kids gone you need no life insurance. So, in these early years purchasing level term protection for a 20 or 30yr period makes more sense because it is cheaper and this i when you build your assets to eliminate the need for insurance in the later years. Buy term and invest the difference! Always!
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I like that when my health changed and I became uninsurable that I had policies I controlled that they couldn't price me out of or change the terms of. They were mine, purchased when my health was excellent. Twenty years later, when my health went south, the policies didn't. I like that my cash values didn't count against my kids FASFA contribution count. I really like that in 2008 when my real estate, market investments all took a big dump on my portfolio, my whole life didn't go backwards in value. In fact that year it was my most profitable portfolio item. I like going to sleep at night knowing my policies will be there for my family if I do not awake, but I really like that these policies will not let me down or be subject to the extreme market ups and downs that the rest of my portfolio is.
This is just a few things I can mention. There are many many more but hey it comes down to what you actually want to happen, not what somebody else tells you what you should want. If it doesn't fit what you want, don't buy it.