The Radical Guide to Life Insurance: Why you should consider a cash value policy

Tax-efficiency. Permanent life insurance policies offer a tax-deferred investment vehicle. They can also help you shield your heirs from both burdensome income and estate taxes.

Forced savings. Paying your policy premiums regularly allows you to invest money in a tax-deferred savings account. If you have difficulty saving money you might consider the appeal of this forced savings plan, assuming of course, that you have other reasons to own permanent life insurance. For if not, you can earn higher returns on your money using alternative investments vehicles.

Premiums as you age. As you get older, your premiums remain relatively constant. The cash value policy is designed to earn cash in order to minimize your premium costs later in life as your mortality costs increase.

Easy to Cancel. If you are forced to suspend your permanent policy (because either you can no longer afford the policy or you no longer need it), the procedure is relatively easy.

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