Can a 25000 15 year whole life insurance policy purchased for children increase in value significantly say in excess of 100000 as insurance agent claims?

Answer 1

If the policy is in fact a Whole Life policy, there are no limitations as to duration; as long as premium payments are made, the policy remains in force and death benefits are payable when the named insured dies.

Rather, it may be a policy that is structured such that it is fully paid up in 15 years. This means that after that period, no further premium payments have to be made. During that period, it builds cash value, but to think that the accumulated cash value would be $100,000 is questionable and seems high.

When an insurance agent or broker attempts to sell a policy, he/she will illustrate various scenarios to demonstrate financial attractiveness. It is important to keep in mind that these are illustrations (possibilities) only, and that the only thing that you can absolutely count on are the guaranteed accumulations outlined in the policy.

While one of the reasons for life insurance is to provide for dependents (of which a child has none), it is often a good idea to consider life insurance on a child, especially with guaranteed insurability options for later purchases. This guards against later health developments which may preclude later purchase of life insurance.