Investing can also be done with life insurance. Cash price Permanent life insurance, such as life insurance, offers a way to simultaneously achieve the following goals: If you pass away while the insurance is in effect, it pays out to your dependents and accrues cash value that can be invested to generate capital gains.

Your cash worth can increase on average by 6–8% a year thanks to perpetual life insurance. Comparing it to the normal 0.1 percent in a typical savings account, it is quite considerable. As a result, as you get older, you’ll have more growth and money to play with.

You might be wondering whether your life insurance policy is an asset or a liability if you have one. You could be paying a monthly premium for it, after all. The answer is yes, if life insurance builds up monetary value, it is an asset.