Skip to ContentSkip to Footer

How Can I Use Life Insurance in my Financial Portfolio?

Life InsuranceAs you think about building your financial portfolio and the various investment options at your disposal, chances are that you have missed something very important – life insurance. While many people do not consider life insurance as an investment, there are actually many benefits of having an insurance policy in your portfolio.

Liquidity

Life insurance can be extremely beneficial for those who may depend on you for support. Upon your death, it offers a cash payment to your beneficiaries in an amount that never fluctuates. In this sense, it is an extremely liquid asset. Not to mention, it ensures that your loved ones are taken care of after you are gone.

Cash Value

Many life insurance products such as universal life, whole life and variable universal life accumulate cash value over time. The cash value that eventually accumulates can become a very valuable asset. For example, you could use the cash value of your policy to boost retirement income, pay tuition or even make a house down payment. Since it is the cash value of your life insurance policy, you can use it anywhere you want to.

Improve Portfolio Performance

According to independent research, having life insurance as part of your overall financial portfolio may be able to improve your portfolio’s performance. Experts believe that you can supplement the fixed income part of a portfolio with whole life insurance in order to improve the overall performance and face less risk.

Taxes

Another reason that life insurance makes an attractive addition to any financial portfolio is the many tax advantages. Most life insurance policies paid to the beneficiaries free of federal income taxes. It can even be used to offset estate taxes.

Some life insurance policies such as universal life, variable universal life or whole life can accumulate cash value that is tax-deferred. Not to mention the fact that you can also access this cash value at any time. This means that you have an additional tax free source of income, should you ever need it. However, accessing the cash value of your insurance policy through partial surrenders or loans will reduce the amount of benefits that will eventually be paid out to your beneficiaries.

Affordable

Life insurance can actually be much more affordable than you may have thought. Depending on your financial portfolio, you can determine what life insurance policy is the best fit for your needs. With a wide range of policy types and options available, you are sure to find the fit that is perfect for you and the ones you love.

Get A Quote

This field is for validation purposes and should be left unchanged.

Customer Reviews
5/5

Great agency great com skills very professional. Am a happy camper.

LF
Lori F
5/5

I’m very happy with the entire process and the agency.

RS
Ryan S (RS)
5/5

Incredible service!

RE
Roman E
5/5

Since 2003 they have been courteous, friendly and professional.

LC
Lisa C
5/5

...knowledgeable advice on insurance products.

John Trotta photo
John T