Co-Founder, Coastal Financial Partners Group, California
Life insurance is a responsible thing to purchase and provides invaluable protection but I would not refer to it as an investment.
First and foremost, 75 million US families rely on life insurance because of what it does: Provide a tax-free death benefit to protect people and businesses using discounted dollars.
The cash value in permanent life insurance is a valuable secondary feature which helps keep premiums low for later in life when the pure cost of insurance would be prohibitively high. The internal rate of return on the cash value can be projected based on current assumptions and should compare favorably to other conservative long term savings products but won't likely compare favorably to investments subject to market risks.
As basic savings vehicle, insurance cash value is important. In fact, 20% of long term savings in this country are in life insurance and annuities which form the foundation of savings for millions of families.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance isn’t an investment. However, a sound investment program normally includes life insurance. An investment program requires time to create an estate. A life insurance policy can create an estate with the payment of a single premium. There are types of life insurance that have investment options but the traditional whole life or term policy is a guaranteed contract.
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First and foremost, 75 million US families rely on life insurance because of what it does: Provide a tax-free death benefit to protect people and businesses using discounted dollars.
The cash value in permanent life insurance is a valuable secondary feature which helps keep premiums low for later in life when the pure cost of insurance would be prohibitively high. The internal rate of return on the cash value can be projected based on current assumptions and should compare favorably to other conservative long term savings products but won't likely compare favorably to investments subject to market risks.
As basic savings vehicle, insurance cash value is important. In fact, 20% of long term savings in this country are in life insurance and annuities which form the foundation of savings for millions of families.