Life Insurance As An Asset Class
November 16, 2012 
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For some reason, life insurance is frequently looked over as an asset class. Perhaps because most people (including many financial planners) aren’t aware of it’s many uses. If you asked an average consumer off the street all of the ways that life insurance can be used, the most likely response will be a simple “Death benefit” followed by them scratching their head to think of other uses.
In reality, life insurance has greatly evolved over the years and comes in a wide variety of forms. Besides the standard death benefit, many of today’s life insurance policies are actually quite sophisticated with accumulation aspects, tax-free income opportunities (in the form of tax-free loans on universal life policies), long term care and confinement riders, and some unique guarantees that most people don’t even know exist. Financial advisors are slowly becoming aware of these unique characteristics of certain life insurance policies. Combine that with the approximate 10,000 baby boomers hitting 65 every day for the next decade, and this could certainly be a perfect storm for life insurance. Our bet is that in a few years from now, life insurance will no doubt be considered its own asset class.
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