1.    It’s never going to be any cheaper. You’re not getting any younger.

Buying a Whole Life policy for yourself now will save you money in the long run. Taking advantage of a low premium while you’re in your 20’s is the best thing you’ll ever do for your financial future. Get insured now for a lower premium and if you decide you don’t need the policy later on in life surrender it for the cash value. It’s very common that the cash value on these policies is higher than the overall premiums which were paid after 20 or more years in force, so it’s like an investment. It’s a great addition to any retirement plan.

2.    The premium will Never Go Up

Unlike Term insurance, you don’t have to renew a Whole Life policy. The Premium stays the same for as long as you keep the policy in force. Anyone who has ever seen what it’s like to renew a term policy knows how much better it is to have a policy that doesn’t need to be renewed. Not that a term policy is a bad thing, mind you. Just make sure it’s for the term you need. Always be sure you have the right amount of insurance for the time that it is needed.

Renewing a term policy can cost up to 4 times the original premium, so make sure you won’t need it any longer than the term for which you’ve purchased it. As for the amount that is needed for your whole life, buy a “Whole Life” policy. That’s what they’re for.

3.    It’s good for life and you can pay it off in 20 years

Imagine having an insurance policy that you don’t have to pay for. With a whole Life policy you can pay it up in 20 years and still keep it until you’re 100. Your beneficiary will benefit as long as you keep the policy in force. So if you buy a policy at age 20, it will be paid off by the time you’re 40. Coincidentally, this is the age that people tend to start being really concerned about insurance (speaking from experience here).  Buying a Whole Life policy at age 40 is extremely expensive in comparison to buying one at age 20. Having it in place and paid for by the time you need it will make life easier later on.

Thinking Forward

So you already have a policy for yourself? Great! Wish you had bought one while you were young? We all do, but it’s not to late for your children.

Too many times we look back on our lives regretting choices we’ve made. I wish I had bought the policy that was offered to me by a Life Insurance Advisor who knocked on my door when I was 21. I can’t fix that for myself, but I can for my kids. Consider putting a policy in place for your children now.

Buying a policy for your children may seem like a questionable thing, but there’s no better gift you can give them. Just ask yourself, Do you think your child will need a Life Insurance Policy at some point in their life? If the answer is yes, (and it should be) then think about how much easier it is to pay for that policy now that it will be when they’re 30.

For example, buying your 3 year old girl a Whole Life policy for $100,000 with a paid up by year 20 option might cost just under $400* a year for a total premium of about $7900.00*. By year 20, the Cash Surrender Value (CSV) would most likely be well over $8000*. Your return on investment to date being the insurance for those past 20 years.

Now, at age 23, your daughter is old enough to decide (with proper advisory) whether to keep this policy in place or surrender it for the cash value. Certainly, the most advisable thing would be to keep the policy in place since it costs nothing. Even if she doesn’t need the insurance, the CSV continues to grow. At age 60, the policy could be worth roughly $70,000*! Not a bad return on an $8000 investment that mom and dad set up for their little girl. But it gets better! Age 65? $90,000* CSV! Age 70? $117,000* CSV! Not a bad little retirement fund at this point. Maybe money for a few vacations? Who knows?

The point is, a whole life policy is a valuable part of any retirement plan. If you think it would be handy in your retirement, wouldn’t it be nice to give that to your kids?

*Rates shown are not to be taken for quote. Speak to an advisor today to get a rate that is accurate for your age and time.

The table below shows how the premiums paid on policies bought can be far less that the return in the long run. It also allows you to compare how much more valuable the policy is when bought for a youth as opposed to an adult.

Please Note: The rates shown in the table below are not to be taken for quote. Speak to an advisor today to get a rate that is accurate for your age and time.

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