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A Look at Whole Life through a New Lens

wholelifeWhole Life products have traditionally been viewed as expensive, obligatory, and a most unpleasantly- “death insurance”. However, an increase in Whole Life product sales has been trending in recent years. People are starting to become educated about the diversity of Whole Life insurance and are seeing the positive facets of them. Let’s take a look at a few of the reasons people are buying more Whole Life policies.

  1. It’s Permanent. Whole Life insurance remains effective for the duration of the client’s life. Term Life policies expire and Universal Life products many times are subject to interest rate and market fluctuations.
  2. Cash Value Growth. Does your customer want an alternative to CDs or bonds? Many Whole Life policies have higher-yielding cash values than banks and financial products. Your client may like the idea of gaining interest on an investment and purchasing life insurance at the same time.
  3. It Balances Your Investment Portfolio. If you have a client that is an aggressive investor or entrepreneur, a Whole Life product counter-balances against more volatile markets and provides stability in an investment portfolio.
  4. Savings and Retirement. Whole Life product premiums can be a bit expensive; but when you measure net present value of premiums relative to cash value you will discover they have a very favorable cost structure over a lifetime. Many are realizing traditional retirement accounts will not allow them to save enough to meet their retirement needs. Whole Life insurance can be used as a supplemental savings and retirement vehicle while providing coverage at the same time.

If you haven’t thought about the different angles of Whole Life insurance, here are four great points to begin considering.  Whole Life policies can benefit people in many different ages and stages in life.  Look a little closer and you may find a whole new market for your Whole Life portfolio.