Should you use life insurance as an investment option? Well there are two schools of thought on that topic. However let me first start with the basics first.
Life insurance fulfills a vital financial need in protecting dependents (many times their children, their spouse, or both, or possibly even other beneficiaries) in case an income earner (or both earners) of the household pass away. In exchange for paying a predictable relatively small premium for life insurance, the insured person of a life insurance policy can protect his/her family from financially devastating events. Life insurance can assure your dependents of having enough funds to replace the financial impact of losing an incomer earner and still allow the dependents to be able pay off their mortgage, final expenses, and any other debts, etc. Depending on how much the life insurance death benefit was set up for in advance in your life insurance policy, it will possibly even have enough left over to pay for children’s future college expenses, etc.
So the one school of thought is to have your goal of life insurance just to be able replace only what’s needed and invest the rest elsewhere. Similar to term insurance for a set number of years, with no cash value, but keeping the premiums very inexpensive. Or a Universal Life set for a longer period of time up to lifetime, but stripping out the cash value component to keep premiums lower. In this scenario, you keep your expenses you intend to protect, separate from your savings that are intended to grow.
The other school of thought is to go with a permanent life insurance policy that does have an investment component with cash value built into the policy. Such as whole life or universal life with cash value built in, variable life, etc. It may seem convenient to address several financial goals by buying one policy, but their investment component of these type policies can be complex and easy to hide high expenses and some type policies may even put a ceiling on your potential returns. You possibly may even be required to lock up your money for an extend period of time. Or even if you are not required to lock up your money, it may cost you a lot if want to cash out of your contract early, possibly even losing your principal protection.
Bottom line, it is a personal decision which direction you choose. One person may tell you one direction and another advisor may tell you a different direction. Only you can really decide what you feel is the best solution for you and your family. Just try to get all the facts first to make an educated decision.
Note: Life Insurance information can be confusing to many people. As an "independent licensed agent" I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose a life insurance policy, from many choices of different insurance companies, that you feel fits your needs. Plus if you choose to work with me you will have personalized service by a local agent that can shop premium quotes for you. If you would like my assistance to discuss and/or start the process of getting you insured please call me at 941-404-5334.