Why Would Anyone Buy Whole Life Insurance?

  1. 160 POINTS
    Lee McDermett
    Owner/Agent, McDermett Insurance Agency, Forney Texas
    There are many reasons to purchase whole life insurance. Whole life insurance offers a lot of guarantee's that work well on small face amount policies. Some WL policies have little to no underwriting for them, making them an excellent choice for people that have health problems.
    Answered on September 3, 2014
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  2. 312 POINTS
    Brian Raymer
    President, Raymer and Associates, Inc., United States
    Whole life insurance policies are purchased for many different reasons such final expenses, estate planning, tax purposes, gift giving or in many cases smaller whole life policies are "simplified issue" meaning that they are easier to qualify for if someone has pre-existing conditions, takes certain medications and cannot qualify for larger term policies.
    Answered on September 3, 2014
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  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    100% of all Americans die.  Whole Life Insurance policies pay the majority of death claims.  If you want those you love to be protected when you die, whole life is the safest way that you can do it.  There are tax advantages and internal returns that appeal to some but just to know that the company will pay the death claim when you die and never change the amount of the premium is very appealing.
    Answered on September 3, 2014
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  4. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I'm assuming that you mean in relation to purchasing a cheaper term life policy? The best reason is that while term life policies statistically pay out very few times compared to whole life policies. Everyone dies,and a whole life policy pays out when you do, no matter the age. To get paid on a term policy, you have to pass during that term. Another reason for whole life is that if you get into a bind, and need some quick money, you can borrow from your policy. You cannot do that from a term policy. There are typically easier underwriting standards on whole life policies also, making them surer bets to get. I hope that helps, thanks for asking!
    Answered on September 3, 2014
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  5. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Whole Life insurance is a wonderful product. If purchased from a Mutual company it carries some really great wealth building properties along with exceptional; tax advantages! Whole Life insurance can become a retirement income supplement. You can use the cash value of the policy to become your own personal bank and take advantage low interest rates while still collecting interest and dividends on the money you're using! I like to help people see the life and living benefits of whole life insurance, but obviously there are the death benefits that pass to the beneficiaries tax free as well. Oh and the cash value is completely protected from law suits and bankruptcies! There are so many good reasons to purchase Whole Life Insurance!! I could go on, but I need to meet with clients to help them with their insurance products.
    Answered on September 25, 2015
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