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Robinseeta, you asked:

<< I want to purchase a policy for my 18 year old. What is the best policy to purchase? I was thinking of a whole life or universal life policy where he can use the policy as a life insurance, savings, disability policy etc. Is this possible and what company is the best to do this. I am not sure I am asking the right questions so pls feel free to add your thoughts. >>

First note . . . as you can see, some people tend to ignore some of the things you've said and asked and proceed with thoughts that tell you what they think YOU should "want" to do. I would point out that in any kind of decision like this, you'll need to be VERY clear with yourself as to exactly and specifically what you want to accomplish and over what period of time. Then analyze various options and find the path that best accomplishes YOUR “set” of issues in the best way.

Just which type of policy to use towards your stated uses you WANT to address there is many other questions and issues that need to be addressed to determine which way to go. For example, there are issues of just what kind of guarantees are of particular important to you and/or for your 18 year old; what are your priorities with regard to various issues and wants; there are issues of risk tolerance for both you and your 18 year old; there are issues of who's would control the policy and when you may want your 18 year old to have control and whether such a policy can be handled responsibly in they way you might intend; there may be particular family health issues that needs to be addressed and discussed; issues of guaranteeing future purchases of life insurance coverage; etc. So, things like this need to be discussed at length to get an idea as to what might really best if YOUR set of objectives.

The best way to do this would be to take some time and seek out a good experienced agent/broker in you area. Then sit down with such an agent/broker/advisor, with that clear idea of what you want to do, and see just how your questions might best be answered. Such an advisor can help give you the kind of information on the pros and cons of various alternatives where you can then make good informed decisions.

With this understood, let me point out that if it's guarantees that are particularly high on the priority list then a good whole life contract may be the primary focus of what might meet your set of issues. If flexibility is more important than guarantees, the UL would likely be the type of policy focus on. If high returns are a high priority above guarantees and one has investment experience, then maybe some form of variable life contract might be appropriate for what YOU “want”. As for what company(s) to look at, that too will depend a LOT on just which type of policy best fits your set of issues.

Speaking ONLY for myself and for MY “set of issues”, I prefer a VUL (Variable Universal Life) policy for my children (which is what I've done). But VUL contract are NOT the best thing for most people. And as I've said many time before, there actually only suitable for a small percentage of the population. But I find they in my case the variable contracts I've bought for my two sons and the way I've set them up is a LEGACY “I want” to give to them and meet MY objectives. For other people, a whole life contract may be more suitable due to more simplicity and guarantees that may be included (including issues of disability).

Finally, just be sure to have a clear idea of what your really trying to accomplish and then look at ALL the alternatives (not just life insurance) to see what path you can take that best takes you towards meeting YOUR set of “wants”. Now if you want to expose the details for your set of issues, then maybe there can be several of us hear to can then better answer the question(s) you've asked. If not, then find that good experienced agent/broker/advisor in your area for this help.
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