Let’s face it, not a lot of us are excited about life insurance. “A necessary evil” is how it is often described. However, if one took the time to study the economic dynamics and risk mitigation aspects of an appropriately procured, well designed and regularly managed policy, there would be a discovery that, independent of the emotional aspect of life insurance, the benefits can be attractive.
Whether it is due to emotional or economic factors (or good salesmanship), many of us have decided to layer life insurance into our family, business and estate planning. Cash value life insurance may be one of the most complicated and least transparent financial transactions with which many of us are ever involved. That being said, most people wrongly believe it to be a rather simple transaction: I pay my premium and someone gets a benefit when I die.