Younger consumers turning to whole life insurance

Nov 18, 2010

Some younger people are turning to life insurance for financial security.

A recent survey showed consumers under 40 who purchased whole life insurance did so because they felt it would lead to more financial security.

The poll, taken by a major life insurance provider, showed these younger consumers purchased this type of protection for a variety of reasons. Like some of their older counterparts, 72 percent of those under 40 said they bought a policy to protect their families.

Guaranteed cash values provided by whole life insurance also played a role, as this reason came in second at 66 percent. Another 54 percent said they saw these products as a way to help with retirement income.

"It is clear from our survey that whole life purchasers understand its value not only as an insurance product, but as an alternative low-risk asset for long-term financial security," said Michael Ferik, a senior vice president with the life insurance provider.

Consumers who are looking at life insurance should keep in mind their coverage needs may change over time. Experts include life changes such as marriage, buying a home or having children as reasons why people may review their policies.

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