For those looking to invest in life insurance, Joe Templin of Workbytes writes that it should be used to contractually share risks that are too big for an individual to share and help prepare families for the unexpected.
"I have three kids ranging from a year to six, and I do not have enough money built up to pay for their educations or to keep them in the neighborhood with their friends if I were to get hit by a bus," Templin said. "Life insurance will make sure that if I die they will get the education they deserve without having to work full time to pay their own way."
Templin said while the primary purpose of life insurance coverage is to pay off debt and help maintain a lifestyle, chances are nothing bad will happen, so this type of policy can also accumulate cash that can be used to supplement education or retirement costs. This guarantees the death benefit even if the death does not occur until very late in life.
According to a report form LIMRA earlier this year, 65 percent of life insurance companies were able to increase sales over the first quarter of 2011, compared to 2010. Accumulation-focused plans were 22 percent higher in the first quarter of 2011 than 2010, the report said.