Is Whole Life Insurance a Safe Investment?

In a Nutshell: Because of the multiple guarantees of whole life policies, a well-designed whole life insurance policy is a good investment alternative – and it provides a multi-layer safety net that traditional investments and Wall Street do not.

Investopedia defines investment as “an asset purchased with the hope that it will generate income or appreciate in the future.”

Note the use of the word “hope,” as in “with the hope that it will generate income or appreciate.”

By that Definition, Whole Life Insurance Isn’t an Investment – It’s Better than an Investment

The Texas Department of Insurance notes that, “Life insurance isn’t an investment.  An investment is a financial risk – you might make money, but you also might lose some or all of your money.  In contrast, life insurance pays a guaranteed death benefit.”

But the guaranteed death benefit is just one of the guarantees you receive with a whole life insurance policy.  Other guarantees you receive that make it better than an investment include:

  • Your premium is fixed and guaranteed never to increase, which gives you protection from inflation
  • You receive a guaranteed, pre-set annual cash value increase – and your gains don’t vanish when the market crashes
  • Your costs are guaranteed, and the company can’t increase them for any reason
  • You are guaranteed to have access to up to 90% of your equity or cash value in the policy whenever and for whatever you want – and your money can continue growing even while you’re using it
  • Your cash value is guaranteed to be equal to the death benefit when the policy matures

No other type of permanent or cash value life insurance policy comes with as many guarantees as whole life insurance – that includes universal life, indexed universal life and variable life.

Unlike unpredictable, volatile, hope-they’ll-work-out investments, with whole life insurance you can know the minimum guaranteed value of your policy on the day you plan to tap into it… and at any point along the way.

Perhaps you’re wondering…

If Whole Life is a Safe Investment Alternative, What’s the Rate of Return?

Wall Street would have you believe that you have to take a lot of risk to achieve an acceptable return on your money.  My investigation of more than 450 different financial products and strategies over the last 25 years has revealed that’s not true.

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I’ve always said that the best reason to buy whole life insurance is for its unbeatable combination of advantages and guarantees, rather than for the rate of return.

You won’t get rich overnight with whole life, but the long-term return of a properly structured dividend-paying whole life policy is nothing to sneeze at.

Using an actual policy issued nearly 50 years ago, we’ve demonstrated how you’d have to get a nearly 10% annual return in a tax-deferred account like a 401(k) or IRA, to equal the return of that policy.

What many people don’t realize is that there are ways to increase the growth of your cash value significantly, especially in the early years of the policy.  This involves funneling a big percentage of your premium into certain riders or options.

But many insurance agents and financial representatives don’t want you to know about these riders, because including them will reduce their commission by up to 70%.

That’s why we recommend you work with a Bank On Yourself Professional, who has advanced training on how to structure a policy to maximize the growth of your policy, and is willing to give up a big chunk of their commission to do so.

Increase your lifetime wealth without increasing your risk…

A Professional will also show you how to use your policy throughout your life to become your own source of financing for your major purchases, like cars, vacations, business expenses, a college education, and more.  By doing so, the typical family can increase their lifetime wealth by hundreds of thousands of dollars, simply by changing the way they make major purchases.

I call the combination of growing your nest-egg safely and predictably and using it to become your own source of financing the “Bank On Yourself method.”

Every plan is unique, and yours would be custom tailored to your unique situation, goals and dreams.  So to find out how you could benefit by adding the Bank On Yourself strategy to your financial plan, simply request your FREE Analysis. You’ll also get a referral to one of only 200 financial representatives in the U.S. and Canada who have met the rigorous qualifications to be a Professional, and who can answer all your questions.


Getting back to the topic of whether whole life insurance is a good investment…

As we saw, whole life insurance doesn’t have the financial risk that investments inherently have, and can’t legally be called an investment.

But because whole life insurance comes with so many guarantees and predictability, it’s better than an investment

Unfortunately, Wall Street has been very successful in brainwashing us into believing we have to risk our money in order to grow it.  As a result, most people today have nothing more than a “hope-and-pray” retirement plan, and they have no clue what their nest-egg will be worth when they need to tap into it.

If you’re not convinced that whole life insurance is better than an investment, take our $100,000 Challenge.  If your favorite financial strategy can match or beat the advantages of Bank On Yourself, you could win a $100K cash reward.

Why not take the next step and request your free, no-obligation Analysis and find out what your bottom-line numbers and results could be if you added Bank On Yourself to your financial plan?

With Bank On Yourself, you won’t have to “hope” it all turns out okay in the end.