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In response to: "Can life insurance have value as an investment?" on LifeHealthPro.com.

I actually do use either VUL or IUL when utilizing cash-value insurance as a tax-advantaged investment vehicle. Either can work well since they can provide the desired yield to get the cash value escalated and reduce the amount at risk (thereby controlling M&E expenses). I just think term insurance is a better protection vehicle, and cash-value policies have limited purposes, one of them being as a Roth substitute when a Roth is unavailable. But for the cash-value policy to be as meaningful to its purpose as possible as a tax-advantaged investment, it is important to reduce M&E expenses as much as possible. The only way to reduce M&E as we age is to reduce the amount at risk, and the only way to do that is to grow the cash value with a level death benefit.

David Schlossberg (the author of the article)
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Title Annotation:Letters
Author:Schlossberg, David
Publication:Senior Market Advisor
Article Type:Letter to the editor
Date:Sep 30, 2012
Words:146
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