Financial Perspective – Life insurance as an investment?
Certain types of life insurance include an investment component. Should you be interested?
Along with their main purpose of financial protection, some life insurance products can become part of a broader wealth management strategy because they incorporate an additional component: investment.
Here are five points providing some insights.
1. Life insurance: primarily for protection
To begin with, it might be useful to recall that the primary role of life insurance is to provide financial protection for your loved ones. Buying a life insurance policy is generally recommended as soon as you become wholly or partly responsible for the well-being and living standards of the people who depend on you. In the eventuality that you weren’t there to provide for them, the tax-free capital made available by life insurance could prevent their financial security and standard of living from being compromised.
2. Two families of life insurance
There are two main types of life insurance…