Separate Your Investments from Your Life Insurance
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Whole life insurance policies have been popular because agents pushed them the most, and because people were told that a savings account was built into the life insurance policy. The problem with this is that life insurance is simply not the right place for investments.
CNN.Money advises that you are better off keeping the two things separate. They also say that you have better places to invest your money, and ones that can give you a much better return.
Remember that if you have a standard whole life insurance policy, and you should die, all your beneficiaries will receive is the face value. The truth is that the cash value you heard so much about simply becomes part of the money paid to you up to the amount of the face value.
If you had put the savings portion into a bank, at least you would get it back with interest. In a whole life policy, you neither get the interest, nor the cash value with the face value. If you borrow your money, you pay interest on it. In a regular bank savings account – you don't pay interest on money you take out when it is your money.
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