Should I invest in cash value life insurance for retirement? This question is about Best Life Insurance

Should I invest in cash value life insurance for retirement?

Answer Question Report Abuse

This question is about Best Life Insurance

Charles J. Stevens, Principal, evergreen financial, LLC

@CharlesStevens • 08/22/15 This answer was first published on 08/22/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

A quote from an insurance general agent I work with, "Investments make lousy insurance: insurance makes a lousy investment". Well said!

Insurance is designed to protect against an unexpected occurance. Investments are designed to build wealth. While insurance may protect the process of accumulating wealth by replacing for example, a car after an accident or a job ending disability. it is not the way to provide you with funds to retire on. Insurance may provide funds for your families benefit if something tragic happens to you before you can amass capital to pay for education or pay off a mortgage. If you examine a whole life insurance policy, you'll find the return on investment to be far below the average return on any of the major market indices over a five or ten year period of tiime. Granted the market was down 10% this week, but that has happened many times in the past and will happen again in your lifetime. I saw an interesting graphic this morning regarding periods of time after a sell off like this weeks that showed the time to recoup market losses after a week such as this. The periods varied, but they all were relatively short.

The best method to have funds when you're older is to learn as much as you can about investing, set up a game plan, review it often, modifiy it as necessary and stick with it. Buy enough iinsurance to cover unforseen emergencies and then, go enjoy life!

Answer Question

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by a WalletHub user. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.