Holding a child who wants to be held is healthy and normal, no matter their age. Children learn security in themselves by knowing security in their relationships.
Imagine how it would feel to be overwhelmed with an emotion and seeking comfort from the person you most trust, only to be denied. Children learn how to work through their emotions in a healthy way through our empathy and compassion; by our being ever present and patient.
Hold them. Show them love and respect. Take them seriously, for in their world it is serious. You are not spoiling them by meeting their needs. Holding them will not cause them to need you forever. On the contrary, they will become more secure and independent, in a healthy natural way.