When I was eighteen, a friend of the family who sold life insurance suggested that I buy a whole life policy for $50 a month. He told me about how it would grow and how, when I was older, I wouldn’t have to pay on it anymore. “It’s not the only investment you will ever make,” he assured me, “but it’s a nice foundation.” He went on to tell me how I would appreciate that I had insurance when I was old, insurance that I would not have to pay for anymore, and that I wouldn’t have to qualify to get. “You probably don’t realize it now, but you won’t always feel eighteen,” he said with a smile while at the same time stretching, what he fondly referred to, as his “old back.”
That was thirty seven years ago. I wish I had taken him up on the idea. My parents were dead set against paying for life insurance. They talked me out of it. In their older years they may have wanted to have some so they could leave a nice pile of money behind, but by then they had health problems and insurance would have cost them too much.
I bought a policy each for my two boys, though. When they are my age they will have a nice benefit. Regardless of their health, which I hope is excellent. We can never be sure. But we can insure for it.
When considering Whole Life, you should consider Indexed Universal Life, too. The ways in which each grow over time are very different and should compared.
A definition of Whole Life: Whole life insurance, or whole of life assurance (in the Commonwealth of Nations), sometimes called “straight life” or “ordinary life,” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date. As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy’s beneficiaries when the insured dies. Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance where the premium is fixed only for a limited term. Whole life premiums are fixed, based on the age of issue, and usually do not increase with age. The insured party normally pays premiums until death, except for limited pay policies which may be paid-up in 10 years, 20 years, or at age 65. Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies.
Christopher Michael Plante, Life Insurance Agent
Main office located at 6930 Indiana Ave., Suite One, Riverside, CA 92506
Contact Direct at (310) 808-8714
Serving in the State of Califorina. CA Department of License #OF77271