Why Is Life Insurance Not A Good Savings Plan? 
There are only two reasons I can see which Life Insurance would not be a good place to `` save '' your money . First , if you are not looking for Life Insurance , Second , if you do n't have time to let your money grow . The primary focus of life insurance is to do what , provide a death benefit upon your death -LRB- or the covered persons death -RRB- . If you do not need or rather not looking for Life Insurance , you can find other better ways to save your money , like in mutual funds for example . Second , there are administrative costs to owning your life insurance which are paid for first , before any interest is applied to any excess money . Over time , and if you are funding the policy like it should be , then your cash growth can be tremendous due to tax deferral & compounding growth . 