A report says young families might be best served purchasing a term life insurance policy, as whole policies are best suited to consumers later in life.
Tom Russell, a life insurance expert in Arizona, wrote in the Payson Roundup that term life insurance can be a more affordable and practical option for young couples looking to start a family for the first time. These policies provide coverage for a set period of time, and if the right amount is purchased, they should provide sufficient financial protection for families.
Older consumers may want to consider switching to a whole life insurance policy for its potential as an investment vehicle.
"In one's late forties, fifties or sixties, a case can be made for owning some permanent life insurance," Russell wrote. "The policy can serve a variety of needs, including the financial protection of a surviving spouse or paying for final expenses."
Whole life insurance policies might also prove useful for older consumers looking to pass down their money to heirs with minimal tax implications, experts say.