Why would insurance agents sell whole life insurance to someone who is not planning to have kids?

Hey there :)

As most people here have pointed out, the most likely reason why this is happening is because the Whole Life plan recommended would be used for CI protection for your whole life.

You are right that it doesn't make sense to have a plan for dependents if you have no dependents (duh, unless you are planning for not just kids in the future, but for your elderly parents, disabled relative, etc).

There are 2 main ways to get CI protection:

1. With a Term that covers CI.

2. With a Whole Life that covers CI.

Each method has its own pros and cons, and depending on your current situation, the most appropriate method will vary accordingly. What works for someone else may not work for you, and vice versa.

*As a side note, it is interesting that you used the word "sell" in your question. Normally, financial consultants should be giving advice and consult on what is the most appropriate course of action for their clients. Do take note of what you are experiencing when engaging a financial consultant.

Let me answer this as logically as possible.

The numbers make sense. Especially if you add critical illness.

When we do a comparison of a term versus a whole life plan, the whole life plan is numerically cheaper. The whole argument of buy term and invest the rest needs to be relooked and addressed in today's context. Insurer's have innovated to address the problems of term plans being significantly cheaper than whole life. This isn't the case in today's context for the large majority of people today.

Follow me here.

These days whole life plans have Critical Illness coverage embedded. Although clients decide not to have kids and do not need the coverage for untimely death for the whole life, the probability of falling sick gets higher as they age. During then, who would be the one taking care of them financially? Most likely, clients have to cater a portion of funds for medical-related expenses during retirement planning and this whole life insurance with embedded CI coverage is a programme that can accompany him/her through the young age to the old age.

Life insurance helps support your dependents in the event of death or TPD (total permanent disability).

Assuming there is no cancer riders etc...

Meaning to say that the base life policy could be recommended because you would have considered your parents and or your wife. (Dependents)

Now assuming that cancer/critical illness riders are attached, these would help create additional financial support in the event of cancer or critical illnesses as there would be a payment (depending on the feature of the plans) to help facilitate the exhorbitant hospital bills when your hospital plans are insufficient.

Also, if you're do not currently have a hospital plan, that would mean to say that if you do purchase one in the future, you would still need to come up with that 5% of the bill due to the regulation of co-insurance where you are supposed to take charge of your own medical bills. So perhaps, that Cancer/CI payout would come in handy to help finance that 5%.

Perhaps you do not agree with your agent's recommendations, then you would not take up the plans that were proposed.

And that is the beauty and nature of the insurance industry where you pay for the fit and proper advice given!

*Of course he could be trying to product push to earn as much comissions as possible. (Only you can tell as you've faced him face to face)