Q&A Hot Topic: Cash Value in Permanent Life Insurance

Here we go again, discussing hot takes on permanent life insurance and its use as an investment vehicle.

In this episode, I tackle one of the best questions I have received in a long time regarding the cash value and hidden costs associated with permanent life insurance that I think is critical to understand.

Before considering a permanent life insurance policy as an investment option, make sure you are utilizing the more transparent, low cost, and tax efficient investment vehicles on a regular basis.

More specifically, I discuss:

• The biggest hidden cost in many permanent life insurance policies
• Where your premiums go when funding permanent life insurance
• What is the cash value component of a permanent life insurance policy?
• How does the death benefit payout work in permanent life insurance policies?
• What can happen if you take a loan from your permanent life policy?
• Why permanent life insurance policies make for poor “investment vehicles”

Resources From The Episode:

• Retired-ish Newsletter Sign-Up
• Get Show Notes Here

Key Moments:

(02:05) The Controversial Question About Permanent Life Insurance Nobody is Asking

(05:18) The Answer

(06:23) Understanding Permanent Life Insurance Premiums

(10:33) Taking A Loan From Your Permanent Life Insurance Policy