Some of the money paid into your whole life policy accumulates “cash value” in the form of a tax-sheltered investment account that the policyholder can borrow against. Insurance companies tout these policies as not only a way to leave a financial legacy to your heirs, but also as a good investment tool. read more
Generally, whole life is not a good investment. Term is usually better (if you are in need of pure death benefit). However, many agents try to talk people into buying whole life because it costs 3–5 times more than term insurance, and thus produces 3–5 times more commission for them. read more
For 99% of the population, whole life insurance is a bad investment. Here's a complete and detailed rundown explaining exactly why that's true. read more
Using permanent life insurance as an investment might make sense for some people in some situations—usually high net-worth individuals looking for a way to minimize estate taxes. For the average person, the odds are poor that permanent life insurance will be a good investment compared with buying term and investing the difference. read more