InsuranceLibrary.com – What Percent of My Income Should I Spend On Whole Life Insurance?

  1. Ruth Ladas
    Agent, RLI – Ruth Ladas Insurance, LLC, Fort Myers, Florida
    Thank you for the question. You will likely get a different answer from everyone you ask about that. There is no set percentage as a norm. Here’s my opinion. I love whole life for several reasons; the most important of which is that you have a fixed amount to pay every month. Products with “flexible” payments leave it to you to have the discipline to make payments high enough to keep the plan going. That you are creating your own bank of money and that you can borrow from yourself is appealing as well. The product is lots more expensive than term insurance. I normally set clients up with a combination of term and whole life. After setting our budget, let’s say $150/month. We buy sufficient term insurance to satisfy their short term needs…like to get their children through high school or college…and put the rest of the budget into the whole life product. I hope that this information helps you. It’s a good idea to speak with an agent in your local area. I’m in Florida and if you live in my state, please contact me! Good luck.
    Answered on April 17, 2016

InsuranceLibrary.com is a repository of questions from the general public that are answered by volunteer insurance agents. Ruth Ladas is a regular contributor. For more questions and answers, please to to www.insurancelibrary.com

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