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