Life Insurance As An Asset Class

Monday, September 28, 2020
Steve Quirk
family with pregnant mom

In this final week of national Life Insurance Awareness Month, let's address life insurance as an asset class. Everyone is familiar with the age old proverb “don’t keep all your eggs in one basket”. That is really the basic tenant of diversification and asset allocation. We should have different classes of assets to protect our portfolio and reduce volatility based upon our investment risk tolerance. We also expect different rates of returns on the various asset classes. 


During our working years, having a systematic plan for adding to these assets and accumulating as big a nest egg as possible is a prudent plan of action. At some point, we use our assets as income to live from. Additionally, unless we leave absolutely nothing behind when we pass, our assets will be passed on to our heirs.

Examples of asset classes people may own include:

- Bonds
- Real Estate
- Cash 
- Commodities


We know and expect the stock market to have its ups and downs. That’s why prudent investors diversify their portfolio. If you’re uneasy about the market, you may want to consider using life insurance as an asset to help stabilize and transfer your wealth regardless of market performance.


Life Insurance is an asset. In fact, life insurance can be an uncorrelated asset, particularly participating whole life insurance, providing a fantastic hedge against market risk. Life insurance cash values grow tax deferred and death benefits are paid to the beneficiaries tax free. Distributions from life insurance cash value can also be used as a stream of income to live on and be accessed tax free. 


Our Individual & Executive Benefits Team will work side by side with you to create a plan design that meets your client’s needs in order to successfully attract & retain top tier employees. For more information, please visit our Executive Benefits page, or contact:

Stephen Quirk
Assistant Vice President, Executive Benefits
FNA Insurance Services
516-348-7186 | 
[email protected]