Investments With Life Insurance
When you hear a financial advisor, and more commonly a life insurance agent, advertise life insurance as an investment, the financial advisor is referring to the cash value portion of permanent life insurance and the ways you can invest and borrow that money.
Although permanent life insurance can be seen as an investment, the high cost of cash-valued policies and the fees and penalties associated with them mean that it is generally not an efficient way to multiply your money. and grows over time, but each policy differs in how money can rise or fall.
Variable life insurance offers many cash investment options, but premiums cannot be changed like with universal life insurance. This is because permanent policies such as life insurance include an investment component called cash value. Some types of permanent life insurance may also have an investment component that allows policyholders to accumulate cash value.
The great thing about permanent life insurance is that it has the ability to create wealth and it is also an investment vehicle that uses the monetary value accumulated over time throughout your life.
