Generally, life insurance policies are often marketed to cater to retirement planning, savings and investment purposes apart from the ones mentioned above. For instance, an annuity can very well provide an income during your retirement years. Whole life and endowment participating policies or investment linked plans (ILPs) in life insurance policies bundle together a savings and investment aspect along with insurance protection . Hence, for the same amount of insurance coverage, the premiums will cost you more than purchasing a pure insurance product like term insurance. The upside of these bundled products is that they tend to build up cash over time and they are eventually paid out once the policy matures . Thus, if your death benefit is coupled with cash values, the latter is paid out once the insured dies. With term insurance however, no cash value build-up can be had. The common practice in most countries is the marketing of bundled products as savings products. This is...
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