Is Life Insurance an Investment?

Good morning and how are you today? How was your week? 

Friday newsletters are dedicated to answering questions from our community. Do you have a question for us? Please feel free to send an e-mail to [email protected] You can also send a DM to any of our social media platforms. 

Question

I have gone through a couple of analysts' recommendations on stocks. They all seem to have different opinions. Which one should I go for? - YK

Answer

Hello YK,

Most firms have an explanation behind the recommendation. It could be a detailed one discussing a company’s operations and the outlook of the industry it operates. 

It could also be a much more succinct document that simply states their opinion on stock either doing better or worse than the current price at which it trades. Usually with a one-year view in mind. 

Analysts often have a consensus view on a stock. What differs is the entry price and exit price. In that case, any of them would work. 

However, some firms may specialise in either buy recommendations or sell recommendations. In that case, you need to read through for a deeper understanding of why they have taken a particular position. 

Question

Is life insurance an investment?  - Roland 

Answer

Hi Roland,

Life insurance is an investment. The specific benefit, however, would depend on the type of life insurance package selected. 

Whole life insurance, for instance, can provide investment returns upon retirement. Some insurance plans also provide for one’s beneficiaries, upon a person passing away. 

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