Have you heard of ‘forced savings’? This feature of specific life insurance policies refers to automated withdrawals you have set up to save for the future, such as withdrawing a certain amount from each paycheck and transferring it to a different account.
Due to the cash value of permanent life insurance policies, many people consider them a type of forced savings. But life insurance and savings accounts serve different purposes. I recently talked with Ronda Lee of Business Insider about life insurance, savings accounts, and financial planning for retirement.
Please read the entire article here if you want to learn more about these topics.