Due to the economic downturn still being fresh in the minds of many older investors, many have focused on low risk investing strategies like a certificate of deposits (CD). However, the low risk advantage of CDs can be offset by the low reward disadvantage. For older individuals that have sufficient assets to provide for retirement income and are more focused on investment income being passed on as inheritance to family members, transferring part of the CD funds to a life insurance policy can help increase investment yield.
See Brett W. Berg, Why Cash Value Life Insurance May be the Estate Planning Tool Your Clients Need, Life Health Pro, March 30, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
