Whole Life Insurance Sales Said to Increase Last Quarter

12/11/2009

People who set out to research life insurance options quickly learn the difference between whole and term policies.

Basically, a term life insurance policy provides coverage for a set period of time, after which time a customer receives no payback if they live beyond its set expiration date. Still, these policies are generally very affordable and can be especially useful when it comes to providing extra financial security for families with young children or dependent older relatives.

A whole life insurance policy requires a more substantial financial commitment because along with life insurance coverage, it is also an investment product that lasts for a client's entire life. These policies provide a way for consumers to leave behind charitable contributions or inheritances for their children or spouses.

Despite the added investments required and the overall economic climate, the Life Insurance and Market Research Association (LIMRA) recently reported that sales of whole life insurance policies grew by a substantial 12 percent margin in the third quarter of 2009.

Ashley Durham of LIMRA attributed that growth to the "simplicity, premium and cash value guarantees and low risk" offered by these policies. Regardless of which life insurance policy a consumer chooses, taking the time to fully explore one's options is always highly advisable.

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