Why Do People Obtain Life Insurance? 
Life insurance is one of the investments that allows an individual to trade a low monthly ; payment for a life insurance policy that has a protection amount that is much higher than my monthly payment . If my monthly payment is $ 100 month and I have a policy of $ 500,000 do you consider that money well spent . The Life Insurance policy can aslo enable tax managment strategies if it is a `` cash value '' policy '' . The `` cash value '' builds and as long as I do not withdraw the earnings it is not taxable . So if I have had this policy for 18 years and my `` baby '' is now grown and driving my Subaru and needs money to go to college I can pull the cash value at intervals that allows me to minimize my consequences and my `` baby '' slides off to college . Is that a good `` investment vehicle '' ? Life Insurance also enables Estate Planning strategies enabling me to pass assets to my children without huge tax consequences . 