Is certain life insurance policies a good investment?

Question

I’m 32, single, in good health, only debt i have is a mortgage. I have access to a large amount of cash that I should be investing, a friend suggested me to his advisor to discuss things.

Answer 1

Probably a poor investment which will fluctuate with the market and there are penalties for early with drawal.  A better investment is a solid blue chip stock that will pay you dividends quarterly at a much higher rate than even banks. While the market values fluctuate dividends are usually consistent. A study of the history of market stocks will yield a number of solid regular dividend paying stocks. A service like Compushare will avoid unnecessary broker fees. Good Luck.

Answer 2

Life insurance is a poor investment, especially for a single person. There are other things to invest in that will do better for you.  Be sure you are talking to an actual advisor and not a salesperson. Insurance sales pay high commissions, so some advisors will push the product instead of picking a better investment.

Answer 3

Life insurance CAN be a decent investment, but there's no return unless you die. A policy that allows you to convert it to needed cash later is the only kind I would consider. I think there are better ways to invest money, frankly--though I would not say that you don't need or shouldn't have life insurance as well. 

Answer 4

It really depends on what your liabilities are. Buy only as much life insurance as you need to cover your liabilities. As for investing, you are better off investing the money yourself than paying life insurance premiums. 

Answer 5

Take the money you would have spent on life insurance premiums and buy shares in broad based index funds.

Answer 6

Several years ago, when interest rates were high, insurance policies were a great investment. Today's rates, being almost nothing, have changed all of that.

Answer 7

You are single.  There are ZERO people who rely on you for financial support.   Why on earth would you purchase life insurance?  

Answer 8

Life insurance is NOT an investment. It is for life insurance to protect your family financially should you die. If the advisor says otherwise, he is really an insurance salesman.

Answer 9

Life insurance is a great investment..........but only for the person selling the policy......

Answer 10

No.  First, life insurance is not really an investment.  Second, by planning off your mortgage before you invest in anything an "advisor" recommends, especially life insurance.