K Harrell's Financial Services

Life insurance provides an infusion of cash to combat the adverse consequence of the person that passed away's death.  These funds are generally tax free to the beneficiary.  The cash value grows tax deferred during the insured's lifetime.  Cash value withdrawals are treated on a first-in-first-out basis.  Therefore, the cash value withdrawals up to the total premiums paid are generally tax free.  Loans against the policy are tax free.  Life insurance policies may also be exchanged for another life insurance policy (or for an annuity) without incurring taxes being taken.

Investments in insurance brings more meaning to life insurance.  It can also produce income for retirement.  The investment component of whole life insurance never expires, as long as the premiums have been paid, regardless of when you die.  The investment builds cash value from a portion of every payment paid.  Whole life insurance also earn dividends.  Policy owners can reinvest the dividends that will allow the cash value to accumulate even quicker.  Not to mention there are tax advantages.  The death benefit if typically tax free, the cash value growth is tax-deferred, and if you surrender your policy, you can always take the amount paid into the policy tax free.