TITLE

Less Filling, Great Taste

AUTHOR(S)
Katt, Peter C.
PUB. DATE
January 1995
SOURCE
Journal of Financial Planning;Jan1995, Vol. 8 Issue 1, p6
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article deliberates on the dispute about whether cash-value life insurance is a good investment. Those who argue against life insurance as an investment frequently compare whole life with a perfectly timed strategy of blithely maneuvering among high-flying stock markets stretched across the globe. However, the reality is if the non life insurance investment is going to be stocks, then the life insurance competitor should be allowed to be variable life where a similar investment strategy can be followed. An additional issue that is not handled well by some who push life insurance as an investment is that excess income should first be allocated to tax-deductible investment opportunities, such as simplified employee pension plans. If tax-deductible investment opportunities are available they usually should be maximized before any life insurance investment is considered. However, some life insurance salespeople either do not make the effort to determine if such tax-deductible investments are available, or they argue that contributing after-tax income to life insurance is better than contributing before-tax income to a qualified plan.
ACCESSION #
5553873

 

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