Insurance Investment Meaning. While the cash value of permanent life insurance can be treated as an investment, the high cost, associated fees, and expensive penalties mean it’s usually not an effective way to grow your money. Stating simply, it is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor.
Is investing in life insurance worth it? Life insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.