Life insurance as an investment is a great financial product that can augment traditional investment products like Roth IRAs and mutual funds. It offers the additional benefits of no contribution limits, lifetime tax-free retirement income (Social Security and most retirement income are taxed), the ability to borrow from the plan for things like college or home purchase, and you never lose money even in a down market (your principle is always safe). Those advantages are further enhanced by benefits of the insurance itself such a death benefits, long-term care, disability, and more depending on which plan you choose.

Decades ago, life as an investment had a rocky start with relatively minimal advantages versus traditional investment products. This created a stereotype in investors’ minds that stuck, and the concept was rarely mentioned when discussing financial planning. Fast forward to today where major top-rated insurance companies have redefined the market and associated products, making life insurance as an investment a hidden jewel that eliminates a lot of the stress and anxiety associated with investment (and retirement).

The IRS and other tax entities treat life insurance as an investment as an insurance product, not a financial product. Therefore, all income or profits are tax free, similar to how beneficiaries of life insurance do not pay taxes on the death benefit. This makes financial planning much easier as there is no need to worry about the great unknown—what will tax rates be in future.

That said, there are associated investment products that are taxed, such as annuities, but they offer separate advantages that make the tax implications worth the investment.

No, and that’s one of the great advantages of this type of financial investment. Life insurance as investment products are tied to index funds, and your nest egg never loses its principle or any gains made prior to a market downturn. Like tax-free retirement benefits, this makes financial planning much easier as your money is never subject to the whims of the financial markets.

As mentioned above, there is a lot of misinformation and stereotypes surrounding life insurance as an investment, most of which is based on decades-old preconceived notions. It’s similar to saying Korean cars are all ‘little econoboxes’ which was true in the 1980s but certainly not today.

Therefore, if some gurus or posters on social media make negative claims about life insurance as an investment, make sure you dig deeper and find out where their evidence is, especially what defines a ‘bad investment’. Also find out if they are promoting a competing financial product, which is a clear indication they have a hidden agenda.

One ‘valid’ reason life insurance as an investment can seem like a bad investment might be due to cost. But the reality is most people don’t compare apples to apples, and sometimes compare apples to something that isn’t even fruit!

The fact is financial products, even traditional ones like 401Ks or Roth IRAs, can vary wildly in what they offer, costs involved, and so on depending on the investment company and the plans chosen. It’s like saying a sports car is a bad investment because it doesn’t seat five people—you can’t compare a two-seat car with an SUV.

Another issue is when people compare regular life insurance with life insurance as an investment. Traditional life insurance is more limited in scope, and therefore typically less expensive than life insurance as an investment. And, of course, it only offers a death benefit with few other perks.

It’s often been said that people spend more time planning their vacations than they do planning their financial future, especially retirement. There are a number of reasons for this, but one of the biggest is vacations are simply easier to plan. Financial planning—including life insurance as an investment—can involve an endless number of choices and ‘what-if’ scenarios, including factors like what will the tax rate be in 10 or 30 years and how much risk is acceptable (or not).

That’s why it’s absolutely vital you work with an insurance investment advisor who is independent, not beholden to a single company, and is looking out for your interests and not their commission (such as not upselling you a policy for coverage you already have). An agent who listens to what you want to accomplish and offers suggestions on how to achieve those goals—without a high-pressure sales pitch. And one that understands you should have a diversified portfolio that should also include non-insurance products the agent may not offer.

Financial.dog puts you in touch with an independent licensed insurance agent who specializes in life-insurance-as-an-investment products. These agents uphold the strict ethical standards of Financial.dog, and that means they put your needs first by finding the products that ideally match your goals. They work with top-rated companies, yet know not every company has the right solution for every client.

The initial consultation, set up on your schedule, is designed to explore your investment goals as well as offer insight into things such as how to have a tax-free retirement, how to never lose money even in a down market, and similar—all without obligation.

If you like what you hear, the agent will schedule another appointment in a few weeks in which they will present a solid plan based on your requirements. This includes coverage, costs, and other components—no hidden clauses or fees as everything is transparent. You are also encouraged to ask questions if something isn’t clear or you were considering additional coverage not mentioned in the initial meeting. There is still no obligation at this point, although it is recommended you make a decision if all your queries have been answered.

You can schedule a free, no obligation discovery meeting here.

Sounds funny to match a serious topic like life insurance as an investment with something fun like dogs, right? There is a method to this madness.

You see, dogs live every moment being successful. They wake up and don’t hope or believe it’s going to be a good day . . . they know it will be. They aren’t naturally stressed, fearful, worried, or afraid of the future. This goes far beyond instinct—it’s a core way of living that humans have forgotten over the millennia.

And that brings us to life insurance as an investment. It eliminates many of the unknowns and concerns about financial planning, whether for the immediate future or retirement. In that way, you can wake up every day knowing that even if the markets go down or taxes go up, your investment is safe and your financial plan is on track. That’s a peace of mind and contentment that dogs enjoy every single day.