Whole Life Insurance Quotes are Senseless
People often want to compare whole life insurance to term life insurance, but there really is no comparison, in fact whole life insurance quotes are senseless.
There are many types of life insurance, but for this example we’re simply discussing term and whole life.
And, while many of the hybrid policies that are available like to disguise themselves as whole life, I’m referring to the good old fashioned, dividend paying, whole life insurance from a mutual life insurance company.
Watch this video on comparing whole life insurance quotes to term life insurance quotes.
Life Insurance Quotes and Underwriting
Term life insurance is great for young families who want to protect their lives on a budget. So obviously costs are a valid concern, and a quote makes sense, because it is an expense with less options.
Whole life insurance is great for anyone who wants to protect themselves, save more, and NOT lose money. Typically, wealth transfers and lost opportunity costs are a concern, and a big reason for owning whole life.
The reason a quote for whole life insurance makes no sense is because you have to qualify via underwriting for the coverage financially and medically. So, if anyone runs a “quote” they are probably focused on the wrong thing.
And, then there are myriad of ways to build the policy based on your goals. Whole life policies should be custom designed to suit your financial goals, and that varies with age, income and health.
It makes more sense to apply for the amount you want based on your income and goals, and then if approved, have an illustration ran based on the offer. You only have to accept the offer for the amount you determine, and this should be based on how much you want pay for.
Life Insurance is Different
Let me explain… When banks loan you money to purchase a car, a boat or a house, they force you to buy full replacement insurance coverage on that asset. Why do you think that is?
It’s because they want the loan to be covered if something happens.
Now contrast that with life insurance. No one forces you to get life insurance. So it makes no sense to look at it from that mindset.
In other words, you are protecting something of value with insurance, and in this case, it’s your life.
If I asked you, is it better to own your home or rent it, what’s the best option?
Most people would say owning, because you are not just spending money for something that you will never take ownership of, like with renting. Insurance works the same way.
Wants versus Needs
The living benefits of owning participating, whole life insurance are many… But that’s not the point here.
The point is, you don’t need a quote for something that you want. You want value and ownership.
Once you determine you want something, the decision is yours to determine who you want to do business with. And then you get as much of it as you want.
Of course, you’ll want quality and benefits, but not a cheap product.
Think about it this way… Cheap life insurance is really an oxymoron. Do you want to pay for something that’s not going to do the job?
Comparing Whole Life Insurance to Term Life Insurance
With term life insurance, you are likely getting it because you feel like you need it to protect your family or business, and that’s great.
With whole life insurance, you probably want it because you understand how it can help you accomplish your financial goals. And, protect your family or business from loss without wealth transfers or lost opportunity costs.
The important thing is to get enough while you’re healthy, to support your future. And if you start with term, make sure it is convertible to whole life in the future in case your health changes.
Once you learn how whole life insurance can benefit you while you’re alive… For protection, savings and to recover transfers to taxes and interest, it’s really an easy decision.
So, I hope that helps. Let me know your thoughts in the comments section below.
If you’d like to learn how you can use whole life insurance while you’re alive and reduce your wealth transfers, >schedule a quick discovery call<
Until next time,
Barry Page
Your LIFE Advocate
Barry Page is a Registered Financial Consultant, Managing General Agent and Founder of Legacy Insurance Agency, PLLC. He helps clients with tax-advantaged investment alternatives, and specializes in showing families how to protect their assets, income and lives using a unique financial approach to planning.
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