Life Insurance: An Alternative to Investing in Turbulent Economic Times

Help protect your family's financial future as Wall Street continues its wild ride.

By Tim Grenda

Matrix Direct Content Specialist and Copywriter

It’s almost impossible to escape all the bad news coming from the United States economy these days. Our national debt is piling up, unemployment remains high nationwide, and people’s 401k accounts and other investment funds tied to the stock market are taking a serious hit.

But even as millions of financial portfolios go into meltdown, there are safer alternatives to risky investments, including purchasing various types of life insurance. In many cases, buying a life insurance policy can provide a stable foundation on which to build a long-term family financial plan.

A cash-value life insurance policy can serve as emergency funds to be tapped into as needed. If the death benefit rises to a level that is more than a policyholder’s survivors will need, cash loans can be taken out from the cash-value policy. And best of all, under current tax laws, the proceeds from a cash-value life insurance policy are paid to surviving beneficiaries income tax free.
 
A blended policy, which combines whole life and term life into a single holding, is another popular choice for some consumers looking for a safer-than-Wall-Street investment alternative. However, whole life can carry high monthly premiums that deter some consumers from buying a policy.

As another option, some people opt to buy a term life insurance policy – which provides coverage for a specific period of time and costs less than cash-value policies – and invest the savings from the less-expensive premiums.

Use a Life Insurance Calculator

For many consumers, using a life insurance calculator is a good way to find out just how much coverage they need, for how long, and how much it might cost them. By entering your financial information into a life insurance calculator, you may get answers to questions you have about your life insurance needs. Then, you are in a much better position to know how much coverage you'll need.

However you approach it, buying life insurance generally may amount to a safer, more stable alternative asset, even in these crazy and uncertain financial times.