Appropriateness of whole life insurance. Estella and Hugo Sanchez are a dual-career couple who just had their first child. Hugo age 31, already has a group life insurance policy, but Estella’s employer does not offer life insurance. A financial planner is recommending that the 25-year-old Estella buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Estella evaluate this advice and decide on an appropriate course of action.