The Concept and Importance of a Life Insurance Policy.

Life insurance is not an investment. Insurance is insurance, just like car insurance -it is not an investment. You pay a premium. That premium buys peace of mind. Now, certain life insurance contracts build cash values, still not an investment.


It is a savings, just like a savings account is not an investment. LI is the most effiecient way to to save money, not spend money for oppurtunties before age 59.5. Compare it apples to apples to CDs Savings accounts and money markets. People that compare it to investments are ridiculus because it has guarantees and investments do not. But when its compared to savings vehicles it shines clearly. Oh and in all my experience a savings account is not really a saving account, its a deferred spending account.
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Life insurance is an investment into your beneficiaries - and they just won't see any % returns until you croak :)

My cash values are up. How are your stocks doing? LOL
 
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It is a savings, just like a savings account is not an investment. LI is the most effiecient way to to save money, not spend money for oppurtunties before age 59.5. Compare it apples to apples to CDs Savings accounts and money markets. People that compare it to investments are ridiculus because it has guarantees and investments do not. But when its compared to savings vehicles it shines clearly. Oh and in all my experience a savings account is not really a saving account, its a deferred spending account.
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My cash values are up. How are your stocks doing? LOL


What? What happens if the cost of insurance is raised or the interest rate cut, or both? There goes your savings....life insurance is NOT a savings vehicle and it is NOT an investment.
 
i never knew this but thanks for posting it here,looks like I forgetting something,I have an insurance before but when I moved and stop paying it,it seems to disappear without further notice.:idea:
 
".........It’s easy to laugh at our irrational fears, especially as we age. But the current threat to boomer retirement isn’t at all funny. The bedrock of any successful retirement plan and lasting financial legacy is effective risk management through the use of insurance. It’s considered the first level of the financial planning hierarchy of needs. Hell, the American College (until a recent curriculum change) began its CFP, CLU and ChFC courses of study with Fundamentals of Insurance for Financial Planning. Riveting, to be sure, but also completely necessary. So why do so many financial advisors outsource this most basic client need?
Can’t tell you how many high-net-worth advisors say they’re comprehensive, then add they don’t handle insurance and refer clients to a trusted life or long term care agent. Too many advisors still view insurance as something that’s sold, and its commission-based compensation structure offends certain high-minded sensibilities....................."


Danger, Will Robinson - Boomer Market Advisor
 
What? What happens if the cost of insurance is raised or the interest rate cut, or both? There goes your savings....life insurance is NOT a savings vehicle and it is NOT an investment.

I know you can't say life insurance is an investment and I personally don't sell it as such. That being said, does it have a positive ROI?

If yes, it's an investment. Prudent or not, every one has their own opinion.

By your rationale, if you invest in a mutual fund and it goes down, there goes your savings. Does that mean a mutual fund isn't an investment?

P.S. In my personal WL policy, I have a minimum guaranteed ROI stated in the contract (based on the claims paying ability of the company). Is it much, no. It's a small percentage of my savings that's guaranteed to increase in value each year and gives me the option of a permanent death benefit if I still want it later.
 
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