How Can Life Insurance Be Used As An Investment? 
can life insurance be used as an investment ? Yes , it can . Life insurance has been used as an investment for hundreds of years . While there are some who try very hard to tell you why it 's not an investment , they always seem to never get around to talking about RISK and how there are different levels of risk with different types of investment . Usually , when beating up life insurance , a equity is used with a hypothetical 12 % return on the equity . They never talk about Risk and what role it plays in an investment . Choice A pays 5 % return steady over time , chugs along never goes backward , even in a down marketand has a .001 % chance of failure . Choice B can pay 30 % return in any given year or lose 30 % in any given year . It can go backwards , it can double extremely fast and it has a much higher potential for failure . Which should you own ? How about Both ? One is a safety net which allows you to accept more risk with another choice which can reward you for your efforts . However if it fails to live up to it 's potential , the other safer route keeps you from losing everything . So yes , life insurance can be used as an investment , should it be your only choice ? no , not really , no more than straight equities should be either . Hope this makes sense . 