When someone wants to buy a life insurance policy, he/she has to go through a double process: a medical underwriting, and a financial underwriting.
Quite often, as people start realizing how efficient the infinite banking concept is for growing and protecting their wealth, they ask how big of a policy they can purchase. Because of the nature of these policies, the health of the life insured is really important. The insurance company is basically going to look at the data they have gathered over the years on ten million lives, and be able to estimate with fair accuracy the probability of your longevity. There obviously always are accident that are completely random, but the percentage of these accidents is very low, compared to the number of people who die from a disease or poor habits.
The insurance companies love selling term insurance, since the risk of them having to pay a death benefit is around 3%. With a whole life policy, the risk for the insurance company is much greater, as these policies don’t expire, and the premiums don’t go up every 10 or 20 years, encouraging the policy owners to cancel the policies. This is why these permanent type policies are following a more restrictive underwriting process. They’re going to check your health and finances a lot more before offering you the coverage.
Young people tend to be very healthy and easy to insure, but not to have the money to fund big policies, as they haven’t had a chance to build enough savings yet, or have too many other obligations that drain their coffers (like kids). Older people tend to have accumulated more wealth that they can redeploy into a policy, but might not be healthy enough to qualify any longer. The solution to get around the medical underwriting, is to open policies on dependents or business partners who are more healthy.