Contrary to popular belief, life Insurance can be a good investment in some cases. Journal of Financial Planning lists two specific situations when it could be a prudent investment. First, it can be beneficial for cash values and wealth transfer. In the first situation, advantages include the estate wealth transfer aspect and the ability to keep your asset where creditors can not reach it. The second situation is when permanent insurance is part of needed family protection insurance. To see an example of how each one of these scenarios could be beneficial, please visit the following link: Examples.
See Peter C. Katt, When Life Insurance Is an Investment, Journal of Financial Planning, July.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
