In a recent worth.com article, they lay out their top 10 investing mistakes. The part of the article that caught my eye was on “Not Maximizing the Use Of Life Insurance.” What made this so interesting is how true it is when people typically discuss life insurance. Many people view life insurance as a tool that covers one purpose – a death benefit – which is true with some life insurance products, but other life insurance products can and should be used as an investment tool.
Today, life insurance can be a critical investment tool for some due to the increase of taxes on all levels. Life insurance can play a big role with your current investment options because once you can withdraw funds, the income is tax free and could be used to help pay for retirement expenses. Other lesser known aspects that can be included in a life insurance policy is Long Term Care insurance.
There are many intricacies beyond tax benefits when it comes to life insurance, but when it comes to investing, life insurance can benefit the ones that take full advantage of what the policy offers. Depending on your investment style and estate planning needs, don’t overlook life insurance.