Life insurance today is not the same as it was for your parents. No longer do you pay a premium that only benefits your family when you are dead. Today, Life insurance can be used while you are living as it’s own asset class.
Life insurance as an asset class gives you:
a self completing plan (if you die before fully funded)
tax free growth
tax free distributions
indexed interest that doesn’t participate in market losses
more flexibility than other retirement accounts
The trick is in which type of cash value life insurance product you use, and how well its designed.
The tax benefits associated with life insurance all come from section 7702 of irs code.
With market volatility here to stay, using life insurance as an asset class for you retirement portfolio can be a game changer.