Wednesday, November 21, 2012

Life insurance is a Questionable Investment


This insurance combines life protection and savings at a fixed return. It’s an expensive form of both. Sales pitches about tax deferred benefits behind whole life insurance can be misleading.

Other secure investment options are available. Whole life is not a true investment vehicle, despite any sales talk. Were you to buy term insurance separately for protection, and invest the difference in a secure, low-cost, income-based mutual fund, where dividends are reinvested, you would earn far better returns. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)

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