Younger Buyers Opting for Whole Life
Consumers under 40 are opting for whole life policies over alternatives, and many of these policy buyers are paying more rapidly, within 10 years, because of their desire to be financially secure, as soon as possible, according to a national survey by The Guardian Life Insurance Co. The survey showed 35 percent of those respondents younger than 40 preferred paying their premium as fast as possible versus the previously more popular lifetime payment plan. However, the No.1 motivating factor to purchase whole life policies for those under 40 (72 percent) was the same primary reason for those over 40 (79 percent), which was to protect their families. The second-ranked reason for both age groups was its guaranteed cash value, chosen by 66 percent of those under 40 and 71 percent of those over 40. Additionally, these younger survey respondents said they had considered mutual funds, CDs, stocks and other life products before opting to purchase whole life; 54 percent of this age group sees it as a reliable retirement income supplement.