At our firm Northington, As a Certified Financial Planning Professional, we sigend up for a legal standard of care called a Fiduciary Standard. By law we must always put your interest first. As a Certified Financial Planning Professional, I can't tell you how many times I have seen Whole Life policies sold under a suitability standard, which simply means it has to be appropriate, not the best, or can have tons of conflicts of interest.
Here are are points that hopefully will educated you and motivate you to make the right decision.
Purchasing for insurance coverage? Term Insurance is a much cheaper option.
Whole Life Policies? statistics show most of these policies are cancelled after 7 years, because clients can't afford to continue to make the premiums. The front end heavy fees make this a cost prohibitive transaction. Did the client win or loose here?.
Actuaries- When the data has been reviewed Actuaries, the numbers show it takes 20 years for the Whole life policy to earn its keep. That's a long time! Can you make those premium pmts.
Retirement Plan? Whole life policies if held for long periods of time can be a great tax advantaged plan. Note: the policy loan rate, at 8% on a recent Whole Life policy reviewed at Northington, very high, especially in this low interest rate environment.
Conclusion; Whole life policies have and can be a beneficial product for clients. We use them as a solution to a single premium asset based long term care solution. Get educated, and work with a CFP professional who has the knowledge and sills to look at your situation holistically and most importantly under the legal standard of care to always put your interest first. We think that's important at Northington. Best of luck, and remember to get educated and empowered.