When Does It Make Sense to Have a Whole Life Policy?

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It is easy to get overwhelmed when shopping for a life insurance policy. In many cases it is hard to understand the policy that would best suit your needs. Is a term life insurance policy best? Or maybe a whole life policy? If you had recently been shopping for coverage and were left with these same questions, keep your head up because you are not alone.

Each of these types of coverage has their own benefits but there are certain situations that make the decision making process a lot simpler. In these situations, it would be considered to be a “no brainer” that the benefits of the whole life protection are the perfect solution and are by far in the best interest of the applicant. So much so that often times, whole life insurance is the only option that is offered by the insurance carriers.

Age 0 to 18 Years Old

The first group of applicants would be those that are between the ages of 0 and 18 years old. The juveniles. In fact, many of the nation’s most reputable carriers only offer whole life protection for this group. Generally, these children’s policies are taken out with a specific goal in place that will not only leverage life insurance coverage but traditionally would build cash value over time that could be borrowed against for life events, such as, getting married, a down payment on a home, child-birth expenses, or going to college.

This group would not be recommend to purchase a term life insurance policy for many reasons including the minimal likelihood of mortality prior to the maturity of the policy and the lack of financial justification for the purchase of term life coverage.

Age 60 to 85 Years Old

The second group that most professionals would highly recommended purchasing a whole life insurance plan would be those that are between the ages of 60 and 85 that are in need of a policy with a typically low face amount of coverage, generally between $10,000 and $50,000, that is intended to cover all of their final expenses.

Many carriers have designed insurance products specifically to cater to the needs of this group that offer coverage based upon a simplified issued underwriting platform with underwriting requirements in place to serve the needs of clients in this age group. These specific products are designed to offer a whole life insurance platform of coverage while be able to offer coverage with no medical examination to those with the typical medical conditions that are likely for consumers age 60 to 85; high blood pressure, high cholesterol, diabetes, history of heart attacks, etc.



Source by Paul R Woodward