People under the age of 40 who buy whole life insurance overwhelmingly see it as a low-risk asset that will contribute to their future financial security, not just a traditional life insurance product, according to a survey by the Guardian Life Insurance Company of America. Some 74% of under-40 buyers said their purchase was motivated by a desire to achieve financial security “as soon as possible,” while 76% said a desire to be debt-free contributed to the decision.
Overall, whole-life purchases made up 31% of all life insurance sales this year, the highest percentage in over a decade, according to LIMRA. Industry-wide, whole life sales were up by 23% in the second quarter of this year.