Top 9 Reasons NOT to Buy Whole Life Before Christmas

1. Don’t Rush

You are probably rushing around like a maniac to find those last minute gifts but we would not recommend that you pick Whole Life Insurance as one of those items. Whole Life Insurance is a great financial tool and provides a guaranteed death benefit and cash value that will accumulate over the lifetime of the policy.

A purchase such as this is most similar to buying a home; would you rush to buy a house that you will be paying into for the next 30 years? My guess is you would not. Focus on the holiday season, enjoy your friends and family. Continue your research regarding Whole Life Insurance and revisit this as we move into 2019.

2. Approval Process

If you were in a rush to obtain life insurance, Whole Life Insurance would not be your best option for this year. You can very easily obtain free quotes for Whole Life Insurance here on our website. Once you have an idea of how much coverage you would like you will need to apply for the coverage.

A typical Whole Life Insurance application has several steps including a medical exam portion. Depending on the time of year (like the holidays) and your personal schedule, an application can take between 3-6 weeks from start to finish.

If you have an immediate need for life insurance there are some carriers who offer coverage in as little as 2-5 mins right online. Most often these types of coverage are term insurance or burial insurance. Check out MassMutual’s Coverpath program to get term life insurance online today. 

3. Types of Whole Life

There are several types of life insurance. The two most common policy types are Term Insurance and Whole Life. Term insurance is pretty simple, you pay a premium and this provides you with a death benefit. Term policies can be purchased in blocks of 10/20/30 year increments.

Whole Life Insurance is not as simple. There are several different types and styles of Whole Life Insurance. There are limited pay policies and policies that you can pay for over 100 years. Some policies have cash value, some do not. Some policies have guarantees, some do not. You can learn about all of these types of policies by reading Whole Life Insurance For Dummies

4. Timing

Someone once said “there is never a good time to buy life insurance”. This is true and you cannot time when it is best to buy. Some will say they are young and healthy so they can wait to buy. Some will say that they are to old and cannot afford the coverage. Time is not the reason to buy whole life insurance. But it IS one of the reasons NOT to buy whole life before Christmas.

5. Already have Life Insurance

If you already have term life insurance don’t worry about buying life insurance for Christmas. The question you should be asking yourself is:  “Can I convert my life insurance?”.  Having a policy that is convertible is very valuable. This convertibility option allows for the insured party to change a term policy into a whole life policy without any medical underwriting. This means that if the insureds health were to change for the worse they can still keep their life insurance long-term by changing it into a whole life policy.

6. Christmas Discounts

This is one of the top reasons NOT to buy life insurance for Christmas. As you do all your holiday shopping at the stores and online, companies are trying to entice you to buy with the best  marketing and advertising sales and discounts. It is the discount that gets most of us, we all love a deal right? Life insurance companies do the same in terms of the overload of advertisements during this season BUT life insurance companies do not and cannot discount their products. The price of whole life insurance is the same if you buy during Christmas or in the middle of the summer. The only factors that change price are your age and health. Just another one of the reasons NOT to buy whole life before Christmas

7. Companies

Just like there are several brands to choose from as you shop for your Christmas gifts there are several different life insurance companies to pick from. Not all companies are the same nor are they created equal. When you are looking for whole life insurance you will want to make sure and do your homework. You will want to purchase from a strong company that had a history and track record of success and stability.

8. Other financial priorities

When buying a whole life policy you will be reviewing and considering your budget and long-term savings goals. Buying life insurance for Christmas is not a good idea because the holidays are a time where most people allow for their budgets to become relaxed. This can lead you to over-commit to a savings plan that is not sustainable for the long term and ultimately can make you believe that whole life is a bad product. It is especially important to work with a responsible insurance agent who will properly guide you to a policy design that will be beneficial for a lifetime.

9. Tax Benefits

Whole Life Insurance has many tax benefits. When designed and managed properly you can withdraw tax free money from your policy. Even though a whole life insurance policy has many tax benefits this is not a reason to buy for Christmas. For most Whole Life Insurance premiums are paid after tax. This means that you will be accumulating cash in your whole life plan that is tax deferred. You will not receive an immediate tax benefit and have no need to rush into buying a policy. This is last of the reasons NOT to buy whole life before Christmas

Summary

We have reviewed several reasons NOT to buy whole life before Christmas. Whole Life Insurance could be a great gift to purchase for yourself or a family member. But we would strongly suggest NOT to buy whole life insurance during the holiday. If you desire to buy a whole life policy take your time and do your research. Start by running quotes on our site to see what size policy may be right for you. Once you have an idea of the size policy you would like and the budget that you have to work with we would suggest connecting with one of out whole life experts to review the many different companies and policy options. Our team will be able to ensure that you find the best whole life policy fitting all your needs.

Happy Holidays and Merry Christmas!

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