Life insurance is commonly known for providing a financial safety net for loved ones in the event of one's passing, but it can also serve as an investment tool. Certain types of life insurance policies, particularly permanent ones like whole, universal and variable, allow you to build cash value over time. You can access this cash value during your lifetime for various financial needs or grow it as an investment.
The suitability of life insurance as an investment option varies depending on individual financial goals, risk tolerance and long-term needs. Weigh the pros and cons to determine if this approach aligns with your financial strategy.