Agent Owner, Gilmore Insurance Services, Marysville, Washington State
what is the purpose of whole life insurance? Whole life insurance has many purposes for many people. They don't even have to have the same needs. I can speak as to why I own whole life, I own Whole life because I wanted my life insurance to be inforce when I die. I wanted a safety net for my other investment activities. I wanted control of my policy. I wanted something that will not go backward, once the money is there, it is there. I wanted not to have to buy life insurance later in life as the price no matter what type of policy goes higher. I wanted something that would not end, until I do. Those are just a few of the purposes behind my decision 25 years ago to buy whole life, and I forgot to mention I wanted a locked in premium.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
The purpose of whole life insurance is to provide guarantees. You know what? It does a very good job at this.
Guarantees are a godsend in a financial world in which cycles and ups and downs and cost increases are the norm. It’s nice to have a product you can truly count on.
These guarantees come in three delicious flavors:
Flavor number one: a guaranteed premium.
As you get older, your price stays the same.
As it costs more for the company to insure you, your price stays the same.
If the company has a bad investment year, or two, or three, your price stays the same.
That’s good. But there’s more.
Flavor number two: a guaranteed death benefit.
You see all those variables mentioned in number one above that could affect your price – but don’t?
They could also affect your death benefit. But they don’t.
Neither your age, nor their increasing cost, nor their poor investment performance can reduce the benefit you were leaving to your heirs.
That is really good. But we have one last delicious flavor:
Flavor number three: a guaranteed cash accumulation.
Do yourself a favor and compare the guaranteed growth of cash inside a good whole life contract with other so-called “guaranteed investments” out there. You will notice that whole life basically beats the pants off the competition in this regard.
Of course, you always have to be wise about taking money out of life insurance, and make sure you don’t reduce your death benefit to an undesirable amount. But given that, whole life can make a real valuable contribution to the conservative portion of your financial portfolio.
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With term insurance, most term policies expire before the policyholder does.
Whole life is useful for estate planning purposes and anytime you want to make a charitable bequest.
Guarantees are a godsend in a financial world in which cycles and ups and downs and cost increases are the norm. It’s nice to have a product you can truly count on.
These guarantees come in three delicious flavors:
Flavor number one: a guaranteed premium.
As you get older, your price stays the same.
As it costs more for the company to insure you, your price stays the same.
If the company has a bad investment year, or two, or three, your price stays the same.
That’s good. But there’s more.
Flavor number two: a guaranteed death benefit.
You see all those variables mentioned in number one above that could affect your price – but don’t?
They could also affect your death benefit. But they don’t.
Neither your age, nor their increasing cost, nor their poor investment performance can reduce the benefit you were leaving to your heirs.
That is really good. But we have one last delicious flavor:
Flavor number three: a guaranteed cash accumulation.
Do yourself a favor and compare the guaranteed growth of cash inside a good whole life contract with other so-called “guaranteed investments” out there. You will notice that whole life basically beats the pants off the competition in this regard.
Of course, you always have to be wise about taking money out of life insurance, and make sure you don’t reduce your death benefit to an undesirable amount. But given that, whole life can make a real valuable contribution to the conservative portion of your financial portfolio.