Boomers and whole life. Or annuity

[tippingpoint]

Given that the average lifespan of a man for example is 73, how can someone { an individual not a business unless you want } say 55-65 years old benefit from a whole life policy other than the death benefit? Or even an annuity given the somewhat short period of time. Given the various situations out there such as maybe they want to get their money out of a 401k right now! Or they have no retirement plan, or they make a lot of money, or they don't make a lot of money. I'm sure there are more situations but I'm guessing these four are pretty common. A chunk of money, no money, a lot of income, not a lot of income. Thanks for taking the time.

 

[marindependent]

how can someone....say 55-65 years old benefit from a whole life policy other than the death benefit? Or even an annuity given the somewhat short period of time. Given the various situations out there such as maybe they want to get their money out of a 401k right now! Or they have no retirement plan, or they make a lot of money, or they don't make a lot of money.

Specifics in questions such as this - matter a whole lot. So when you say it Could be an WL Policy [Or an Annuity] and they Do have a lot of money [or Maybe don't] you are more than likely going to get an answer that doesnt really answer the real question [at least in my opinion.] Best of Luck though.

 

[Lloyds of Lubbock]

First of all life expectancy of a 55 year old male is age 80.
[EXTERNAL LINK] - Life expectancy for 55 year old male
There is a 50% chance of surviving past 80.
What's wrong with buying life insurance for the death benefit?

 

[scagnt83]

Given that the average lifespan of a man for example is 73, how can someone { an individual not a business unless you want } say 55-65 years old benefit from a whole life policy other than the death benefit? Or even an annuity given the somewhat short period of time. Given the various situations out there such as maybe they want to get their money out of a 401k right now! Or they have no retirement plan, or they make a lot of money, or they don't make a lot of money. I'm sure there are more situations but I'm guessing these four are pretty common. A chunk of money, no money, a lot of income, not a lot of income. Thanks for taking the time.

Why a whole life, why an annuity?

Since they only have 10 more years in your scenario, Id say they should just spend it all and say f*ck it.

However, if they only have 10-15 more years to live, then why not life insurance?

Assuming they have loved ones, would it not be the most efficient way to pass money to them? While still keeping it liquid and accessible and growing at a safe rate of return while still living? Oh, and while keeping a LTC benefit on them in case its needed.

 

[adjusterjack]

If you want life insurance for just the death benefit you don't buy whole life (or any cash value product), you buy term.

 

[scagnt83]

If you want life insurance for just the death benefit you don't buy whole life (or any cash value product), you buy term.

Not if you actually want it to pay out in old age.

 

[DHK]

Given that the average lifespan of a man for example is 73, how can someone { an individual not a business unless you want } say 55-65 years old benefit from a whole life policy other than the death benefit? Or even an annuity given the somewhat short period of time. Given the various situations out there such as maybe they want to get their money out of a 401k right now! Or they have no retirement plan, or they make a lot of money, or they don't make a lot of money. I'm sure there are more situations but I'm guessing these four are pretty common. A chunk of money, no money, a lot of income, not a lot of income. Thanks for taking the time.

What problem are you trying to solve? You're all over the place.

Until you know what you're trying to solve, you have no sale... and if you do have a sale, it's a pending lapse until they have a reason to keep what you sold them.

 

[shonceman]

If you want life insurance for just the death benefit you don't buy whole life (or any cash value product), you buy term.

Stay in your lane, Jack!

Seriously, though. Whole Life is used by people on both ends of the income spectrum to lessen the financial impact of cash needs at death. For lower income folks, term is the worst idea when their primary need for life insurance is to pay for Final Expenses. I can’t tell you how many times I’ve run into low income seniors who had AARP term until it cancelled when they turned 81, and were now scrambling to find life insurance! For wealthier folks who are trying to solve estate tax problems for their heirs, term is also the worst option, IMO.

 

[WinoBlues]

If you want life insurance for just the death benefit you don't buy whole life (or any cash value product), you buy term.

Cool.

Let's say I am 70. What Term period should I buy so that the Term does not Terminate before I do?

 

[DHK]

If you want life insurance for just the death benefit you don't buy whole life (or any cash value product), you buy term.

If you want death benefit protection ONLY for a set number of years, then yes, you buy term.

If you want death benefit protection for one's whole life, you buy... (get this)... whole life insurance, minimum funded, with premiums to be paid to age 95/100/121, etc.

If you are okay with paying your premiums level every single year without fail... you can purchase non-lapse GUL policies.

If you want to front-load your policies and have your policy earnings help keep the policy going much later... take a look at IUL. (And there are IUL policies with non-lapse riders too that could be even better than non-lapse GUL policies.)

Lots of different options out there "for just the death benefit". It all depends on how much of a guarantee do you want and how long you want the protection to last.