20 Investing Myths You Need to Stop Believing

Iakov Filimonov / Shutterstock.com

4. Whole Life Insurance Is an Investment

One investing strategy involves buying whole life insurance. Unlike term life insurance, which is designed to protect your dependents for a limited coverage period, whole life insurance is a permanent, tax-deferred policy offering lifelong value. Over time, the cash value of a whole life insurance policy grows at a guaranteed rate. However, don’t mistake it for a proper investment, said Kirk Chisholm, wealth manager at Innovative Advisory Group.

“I really hate this phrase because it is completely misleading,” he said. “The end result is that you bought yourself a very expensive form of insurance that you could have probably bought for 75 percent less. Furthermore, if it was an investment, then why wouldn’t some of the world’s smartest investment geniuses invest heavily in whole life insurance?”

PREV 1 ... 4 5 6 ... 21NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

related posts