Is Buying Life Insurance A Good Investment? 
Cash values life insurance can be a savings or investment policy depending upon which crediting method is used and how the policy is designed . There are three saving life insurance policies : Participating whole life insurance , current assumption universal life insurance and indexed universal life insurance . There is one investment life insurance policy that uses a crediting method of separate sub accounts with equity and bond allocations : Variable universal life . The performance of a life insurance policy as a savings or investment policy may depend on the policy design . That design must use the lowest cost of insurance death benefit option that complies with the TAMRA regulations to contain the policy expense . If designed correctly , life insurance can be a great savings or investment policy that can generate tax free retirement income as long as the policy is kept in force for the life of the insured . 