More Young People Buying Whole Life Insurance
A recent national survey looking at whole life insurance completed by The Guardian Life Insurance Company of America, shows that buyers under the age of 40 are going with whole life insurance over other alternatives. This is primarily because they have a strong desire to be financially secure as soon as possible.
Policyholders under 40 are looking to pay for their policies over ten years or less according to the survey. The results showed that 74% of life insurance buyers under 40 are motivated by financial security as soon as possible. 76% have the desire to be out of debt as soon as possible. These numbers are higher than those over 40 according to the article "Traditional Life Has New Appeal to Younger Buyers" found on the InsuranceNewsNet website.
This raises the question of why younger people are going this route when compared to older generations. Michael Ferik, the senior vice president of individual life at Guardian, theorizes that this desire to be financially secure sooner could be motivated by the mounds of college loan debt today's students are accumulating. Some young people have student loan payments as high as a mortgage payment. This may give them a stronger appreciation of a lifetime of financial security.
What's driving these consumers to reach financial security? 72% of these under 40 buyers say their first priority in buying this type of policy and finding financial strength is to protect their families. This is very close to the 79% of people over 40 who are also motivated by the protection of their families. Overall whole life insurance sales were up at Guardian and across other companies in the nation in 2010. More and more people are finding value in this type of policy and all the benefits it has to offer financially.