Vanguard Data Says You Should Buy Cash Value Life Insurance

In this episode, we delve into the financial landscape and explore why cash value life insurance could be a smart move for your portfolio.Vanguard's recent forecasts suggest that U.S. equities are expected to return between 4-6%.

While this might seem like a decent return, we'll discuss how you could potentially match or even exceed this with a cash value life insurance policy.Cash value life insurance is a type of permanent life insurance that not only provides a death benefit but also accumulates value over time. 

This cash value component typically earns interest or other investment gains and grows tax-deferred. It's like having a savings account within your insurance policy, and you can access this money in various ways.

Now, let's compare this to bonds. Vanguard forecasts that U.S. bonds are expected to return a nominal annualized 4.8%-5.8% over the next decade.  

While bonds are generally considered a safer investment, they are not immune to risks. One of the primary risks of bond investing is that your investment loses value due to interest rate fluctuations.

In contrast, cash value life insurance does not suffer from principal risk due to interest rate fluctuations as bonds do. This means that the cash value of your life insurance policy can provide a stable and predictable growth rate, making it a lower-risk investment compared to bonds.So, if you're looking for competitive returns with a lower risk profile, cash value life insurance could be a viable option. Tune in to this episode as we delve deeper into this topic, providing you with the insights you need to make informed financial decisions.

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