Is Whole Life Insurance A Good Product?

Often times it seems the world out there is anti-whole life insurance, and radio has done a great job at promoting term insurance as the end all and best insurance out there. However, most of these so called “gurus” are being paid to promote term insurance. If term insurance is so good, do we really need whole life insurance?

Let’s take a look at whole life insurance and some of the advantages and see if we can’t find something good in what paid spokesman are calling “crap.”

Whole Life Insurance Exists

Whole life insurance exists for a reason. I mean really, if it was completely useless would it still be available? The obvious answer is no. However, there is more to it than just existing.

By definition whole life insurance is meant to last your entire life. The problems is the mentality we have in America today, and the radio is doing a great job at promoting it. Hauser Insurance

People really believe that it is easy to get a 12 percent rate of return on their money. This is a huge flaw in our thinking. So what happens, people are buying term insurance at a younger age, and then turning to whole, or permanent, insurance when they are older.

What is the problem with this though? Well, insurance gets more expensive as you get older. So, people turn to term insurance when they are young, and then as they get older, and they see that they aren’t going to be able to retire when they thought they would, they still need insurance.

The problem is that insurance is much more expensive. This is a huge blow to them.

The World Today

Many American’s today cannot retire. Why? Because they ate up the buy term and invest the difference mentality and it killed them.

Now they are working and many of them cannot afford insurance anymore. I’m not here to discuss the financial aspect of their decisions, so I’ll avoid that. But let’s talk about insurance.

Term insurance is extremely expensive once you hit 60 plus. So what happens if you are in debt and still working at 70? Insurance to cover these debts is astronomical.

So you just go uncovered and, if you die with debt, your family gets nothing. This is an unfortunate ending to a precious life.

Many of these people believed their investments would do so well that they would be millionaires by the time they were 65. However, the markets weren’t so nice to them.

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