Why Is Life Insurance Not A Good Savings Plan? 
A great deal of money has been saved in life insurance plans . The chief reason is that life insurance premiums look like a bill and that forces a person to save . Rate of return is not the issue , rather it is transfering money from current needs to future needs . No other investment is self-completing . If the insured dies the entire $ 1M is given to his beneficiary , even if he has only paid a single month 's premium . Every other investment triggers taxes where life insurance proceeds pass income tax free . It is an extremely flexible savings program with tax advantages and it is self-completing . That is an excellent savings plan for many people . 