Following up on our post from last week about whole life insurance we figured we’d give equal time to another product that is probably more mis-represented than any other life insurance product available, universal life insurance.
So here we are talking once again about the wonders of cash value life insurance. I know, I know…most of you are rolling your eyes in sarcastic disbelief that we could possibly have anything more to say about the subject.
After all, we've written nearly 300 posts at the insurance pro blog and more than a handful have revolved around the use of cash value life insurance. Not to digress but I would like to point out that we often use the terms cash value life insurance and permanent life insurance interchangeably. Just to clarify.
Recently I've noticed that whole life insurance is generally berated by almost everyone in the known universe. Well, most insurance agents really like it but other than that it’s pretty easy to count the number of folks who really like whole life insurance.
Obviously, we consider it to be an excellent component to an overall investment strategy, and as such I thought it would be useful to elaborate on a few of the applications that whole life insurance can bring to the table. (this could also apply to other types of permanent insurance as well) And I know I'll get beat up for just mentioning the word investment and life insurance in the same sentence. But considering a properly structured cash value life insurance policy as a portion of your retirement savings, emergency fund, or your kid(s) college fund is a solid plan. We can and continue to prove it everyday in our practice.