Life Insurance Vs. Savings Plan?

Finally, someone mentioned that WL was great for savings because it was designed for it....I'd disagree. The original design of the product was to find a way to manage the risk for an insurer to take on the only policy that is guaranteed to have a claim on it. For lack of a better term, a way to have a policy designed so that the insured is progressively self-insuring while at the same time covered for if the unfortunate happens and they kick the bucket much earlier than the average.

With that, they realized there's some level of incentive needed, so began the allowing access to the cash/offering loans, while giving some amount of bond-like return on the cash contributed

I can't remember exactly right now, but I *think* it was a regulatory act to make the cash reserve values available to the policy holder for their use - via withdrawal or loan, if they should exercise that. I don't think it was by the insurance company's choice - because they would want to keep control of that asset.

For decades, insurance agents warned against taking out loans from their policies. Most still warn against it. But if used strategically, it can be very powerful for future spending needs.

And, in my opinion, any financial plan or strategy that does not account for future spending needs... is only half of a plan.
 
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