Cash Value Life Insurance Provides A Safe Harbor In Today’s Economic Storm
May 1, 2020 by Marc Schechter
In light of recent market challenges that have impacted the diversified investment portfolios we manage for our clients, many have asked how the cash values in their investment-oriented life insurance policies are weathering the storm. Whole life, universal life and indexed universal life have traditionally maintained their values through tough economic times because they are designed with that very goal in mind.
Today is no different.
When equity markets are up and the economy is running smoothly, it’s sometimes easy to overlook the value of the downside protection you get from using life insurance as an investment. Life insurance will never be your best-performing asset when things are good – it’s not supposed to be – but in times of turbulence, it can provide a stabilizing influence on the overall portfolio and a potential source of cash that can be drawn upon without incurring market losses.