Whole life insurance provides customers with a life insurance policy that will help their loved ones in the future, and with an investment component that will help customers and their families right away. This mixture of delayed and instant gratification has been attractive to life insurance shoppers for decades, but today’s trend in life insurance is moving away from whole life insurance packages. Once, whole life insurance policies were the standard, but today they are the exception.
As the economy
changes and the American public become increasingly savvy about money
management, the full service that a whole life insurance policy provides just
isn’t as necessary as it used to be. People who want a more hands-on approach
to investing are likely to find a whole life insurance policy too limiting.
And, the amount of money that one of these policies requires each month can
make it difficult to pursue other investment options, especially for middle-
and lower-class families who are living on a budget. A lot of financial experts
feel the investment portions of whole life insurance policies do not offer
customers the best return rate on their money. This provides an incentive for
people to purchase term life insurance policies which do not include any
investment components, and then invest their money elsewhere.
However, there are
still some advantages to purchasing a whole life insurance policy. Although the
investments that an insurance company will make on your behalf may not be the
most lucrative, they will almost certainly be among the most stable. Many
people prefer a lower rate of return with a lower chance of loss rather than a
riskier gamble. There is plenty to be said in favour of this perspective,
especially when it comes to planning for the future. In addition, people who do
not have the discipline or inclination to save money on their own often find
the structured saving a whole life insurance policy requires to be a boon.
If the idea of
budgeting your own savings plans and spending time researching hot stock tips
appeals to you, a whole life insurance policy probably won’t be to your
personal taste. Of course, even if you don’t opt for this tried-and-true kind
of policy, you can be certain that someone else will. Although today’s trends
seem to foretell the end of the whole life insurance policy, there are still
enough customers interested in this kind of traditional and conservative policy
that insurance companies will be likely to offer this kind of coverage for many
years to come.
Disclaimer:
This article is presented solely as an example and is not meant to replace
qualified financial advice. If you or someone you know require up to date
financial or legal help, seek qualified assistance. No content on this site
should ever be used as a substitute for direct legal counsel from your lawyer
or a qualified attorney.
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