Recognizing Cash Value Life Insurance as an Investment (Journal Article)

In some circumstances, individuals and businesses purchase cash value life insurance specifically as an investment. The challenge to this use of the product is that it is legally impermissible for life insurance to be advertised to consumers as an “investment” or “savings” plan. This represents a troubling situation where regulation and usage are at odds. The conditions are ripe for this discrepancy to be addressed.

Author:Steve Parrish, JD, RICP, ChFC, CLU, RHU, AEP,is the codirector for the New York Life Center for Retirement Income Planning at The American College of Financial Services. He is also adjunct professor of advanced planning at The American College and an adjunct professor of estate planning at Drake University Law School.

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