Yes, for your retirement or other purposes. Life insurance provides coverage in the event of untimely death, while providing a systematic means of building up funds. Unlike a savings account, in which money is deposited voluntarily, a cash value policy requires regular premium payments on specified dates increasing your cash value. While both life insurance and savings accounts offer a vehicle for accumulating funds, only life insurance provides the specific amount of income in the event of death. A policy's cash value earns interest, but since some of the premium is used to provide insurance coverage, the cash value may not grow as quickly as money in a savings account which provides no insurance coverage.
Inflation typically raises interest rates and, consequently, earning rates.
Funds placed in cash value, dividend-paying insurance policies should reflect increased earning rates, as do other investments. An individual purchases an annuity either through a lump-sum payment or through regular installments. At a certain age, the annuitant receives regular payments for as long as he or she lives. You contribute a portion of your earnings to the plan to be set aside for your retirement. If your income is within certain limits you may take a tax deduction for all or part of this contribution.