Life Insurance as a form Of Investment can be achieved by designing the life insurance policy for maximum cash values and compliant TAMRA minimum death benefit. Product suitability is a significant issue if you select variable universal life, which is a security and has the potential to lose money and incurs policy expenses. Indexed and current assumption universal life both have crediting methods that protect against losses but not against policy expenses. Participating whole life insurance could be an option if the design uses maximum term and paid up addition riders.
These have potential tax advantages as well but also have surrender charges in the first 9-15 years of the policy, so liquidity can be a problem.
That is a great question! The answer is that as an investment in your peace of mind, it is priceless. As an investment in your future, and in knowing that you've protected your loved ones, it's again, priceless. As a financial product, not so much. Life insurance is not designed to make you rich, in fact, it has safeguards built in to keep someone from trying to overinsure themselves. Agents are actually advised to never use certain potentially misleading words in their presentations, and investment is one of them. Any agent that tells you that you can make a ton of money off of life insurance should be politely dismissed. Many will promote policies that are showing you large cash growth numbers, but if you look closely at what has to happen for those numbers to be realistic, they often prove themselves to not be. Please feel free to contact me for more specifics, okay? Thanks for asking?
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These have potential tax advantages as well but also have surrender charges in the first 9-15 years of the policy, so liquidity can be a problem.