Why Invest In Life Insurance? 
There are considerations in contributing to life insurance , first and foremost in client suitability . Permanent life insurance is a long term commitment , with early illiquidity issues . If the policy is kept in force for the life of the insured , there can be substantial tax benefits and positive ramifications for Social Security benefit taxation . There are four permanent life insurance policies to consider based on risk tolerance and long term premium commitments : Participating whole life with maximum term life insurance and paid up addition riders can provide a conservative tax advantaged return based on the portfolio of the life insurance companys predominate bond holdings . Current assumption universal life also an interest rate crediting method as well . Indexed universal life uses domestic and foreign indices as its primary crediting method . Variable life insurance uses equities and bond allocations to subaccounts and is subject to market losses . 