Although the life insurance decision is based on many risk factors, one of the most important ones you'll want to consider when going over the options with your client is the client's age. Earlier in life, there is a longer time horizon for coverage, and therefore the same product wouldn't suit their needs as well as someone who is older.
Early in life
Whole life products offer guarantees on the premium, death benefit, and cash value. Dividends can accumulate into significant cash values over a long period of time. And the companies that manufacture this product are historically strong.
It makes sense to use this whole life as the basis for the conservative portion of your client's financial portfolio.
People in their twenties or thirties frequently purchase whole life because they anticipate having a long period of time in which to accumulate cash values. Also, the lifetime guarantees are especially attractive at a young age.
Late in life
However, it is often the case that additional life insurance is needed later in life – for example, to cover a second mortgage, a business loan, or college funding for children and grandchildren. Or, perhaps, maybe your client didn't get coverage when they were younger, and are looking for their very first policy at an older age.
