Is Term Life Insurance A Good Investment?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Term Life Insurance is not considered an investment because it does not have any cash value. However, if you are asking if it is a good use of your money, protecting your family or business in case of a tragedy is certainly a good thing for which to budget. The return will not while you are alive, but your loved ones will always feel you made a great investment, if the policy ever needs to be used.
    Answered on July 1, 2013
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  2. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Term life insurance as noted by Peggy above here has no cash value and is temporary. So it has no investment value. If you mean "is term life insurance a good value in the case of my dying, then yes... IF you die before the policy terminates. If you die while the policy is in force your beneficiary will receive considerably more money that you had paid into the policy, and that tax free. So in that case it would have been a good benefit, value and investment. If you outlive the policy you get no money back, the policy is gone and so is the money you paid into it. So in that respect it's like many other high risk investments - there's a good chance you'll loose all your money and no one will benefit...except the company that sold the policy (investment).
    Answered on October 30, 2015
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