Life Insurance as an Investment: Is It Right for Your Clients?
January 4, 2023 by Roger Wohlner
When most financial advisors and clients think about investing, life insurance is probably not at the top of the list. Stocks, ETFs, mutual funds and the like are generally the primary portfolio components for most of your clients. This is as it should be.
Wink’s Note: I am sure that this commentary isn’t going to make me popular.
“For clients who have maxed out contributions to tax-deferred retirement accounts like an IRA or a 401(k), a permanent life insurance policy can be an alternative.”
I still don’t understand why people would opt to use life insurance as an investment, if they don’t need the life insurance? I see indexed life being marketed this way A LOT.
Life insurance has charges; the insurance element isn’t free. So, why wouldn’t you invest in an instrument that doesn’t have charges for a feature you do not need? How about an annuity, for example? ESPECIALLY if you are investing for retirement…
School me- please! Join in the conversation HERE. -sjm