When thinking about life insurance there are many options available and policies seem to have far more uses than just offering a cash payout upon the death of the insured. Know your options so you can choose a portfolio of financial protection that is right for you.
Cash-value policies do allow for money to grow tax-deferred, but they aren't the only investment tool that allows for that benefit. Individual retirement accounts (IRAs) and 401(k)s are other common options.
Variable life policies utilize the market's fluctuations to increase return but could also come with significant administrative or investment fees, so choosing the right fee structure is important.
Return-of-premium policies offer a return of all premiums paid after the policy term has expired without a claim. While these products offer a lot of safety, some people prefer to take on greater investment risk in hopes of receiving a higher rate of earnings.
You don't have to use life insurance as an investment, of course. You might wish to simply provide for your family in the event of your death. Consult with your insurance and financial professional to determine which products are right for your needs.