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Everyone buys life insurance with different goals in mind. Mapping out these goals ahead of time can help you narrow down which type of life insurance is right for you and which benefits you are looking for.
If you are hoping to establish financial security for your loved ones after you pass, investing in some type of life insurance may be worth it. You can help support your living financial goals with a life insurance investment using the cash value component – these policies are not just limited to helping protect your family after you're gone. Read on to learn how a life insurance investment works and some types of policies that let you leverage cash value.
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Some types of life insurance policies you can use as an investment include:
Whole life insurance is a type of permanent policy that lasts the entire life of the policyholder. Aflac’s whole life insurance provides whole life coverage and offers the policyholder the ability to accumulate cash value in a tax-deferred account.1
In some cases, you may be able to borrow against this value in the form of a loan. This value grows at a higher rate because taxes aren’t taken out, giving you greater borrowing potential.1
Universal life insurance is a permanent plan that gives you flexibility. You can increase or reduce your premiums, cash value, and death benefit as needed.
With this type of permanent life insurance plan, you can invest your cash value into different kinds of funds and indexes of your choosing.2 Like universal life insurance, when seeking coverage you can choose which death benefit and premiums are the best fit.
Indexed universal life insurance also allows you to invest the cash value component, which can grow based on stock performance. This type of plan can offer flexible coverage that will last your lifetime.
Using life insurance as an investment can be worth it if you want added financial security for you and your family. The cash value component can give you access to funds as needed, whether you want to withdraw funds, take out a policy loan, or supplement your retirement income.3 Compare types of permanent life insurance policies and the coverage they offer to decide whether a life insurance investment is worth it for you.
Life insurance with cash value can be used as an investment tool. As you pay premiums, a portion goes toward your cash value, which can grow over time. Once you’ve built up enough cash value, you can access it in several ways, including getting a policy loan and withdrawing funds. Permanent life insurance policies like whole and universal life insurance can offer cash value that can make them useful investment tools.
Here are some ways you can leverage your life insurance policy’s cash value while you’re still alive:
Once you have sufficient cash value, you can get a loan from your life insurance policy using the cash value as collateral. With a policy loan, you can pay back what you owe at your own pace. But if the loan amount exceeds your cash value, your policy may lapse.
The cash value component can also allow you to withdraw funds from your life insurance policy. You can use these funds to help cover any expenses. Keep in mind that withdrawing from your cash value can reduce the death benefit.
If you save up enough cash value, you can add it to your retirement portfolio and use the funds to help supplement retirement income.3 Consider growing your cash value for several years before tapping into the funds to grow your nest egg.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedHere are some pros and cons of a life insurance investment so you can decide whether investing in a policy is worth it:
Pros of a life insurance investment:
Cons of a life insurance investment:
Investing in a permanent life insurance policy can allow you to access the cash value in several ways based on your preferences and financial needs. If a life insurance investment sounds appealing to you, we recommend chatting with an agent and learning about your options. Our plans are portable, and you may be able to convert an existing term life insurance policy to a permanent one. Learn more and get a quote today.
Get Started
Life insurance with cash value lets you withdraw money to cover necessary expenses. Find out how cash value savings work and the types of insurance policies offered, including whole life insurance.
Life insurance retirement plans (LIRPs) can help fund your retirement. Learn how LIRPs work, their benefits, and how to use this plan to your advantage.
Life insurance with cash value lets you withdraw money to cover necessary expenses. Find out how cash value savings work and the types of insurance policies offered, including whole life insurance.
Life insurance retirement plans (LIRPs) can help fund your retirement. Learn how LIRPs work, their benefits, and how to use this plan to your advantage.
1 Investopedia - How Whole Life Insurance Works. Updated May 7, 2025. https://www.investopedia.com/terms/w/wholelife.asp. Accessed April 21, 2026.
2 Investopedia - What Is Indexed Universal Life Insurance (IUL)? Updated December 30, 2025. https://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp. Accessed March 16, 2026.
3 NerdWallet - Buying Life Insurance as an Investment. Updated August 14, 2025. https://www.nerdwallet.com/insurance/life/learn/life-insurance-as-an-investment. Accessed April 21, 2026.
4 Investopedia - Is Life Insurance Worth It? Updated September 23, 2024. https://www.investopedia.com/articles/active-trading/120814/life-insurance-smart-investment.asp. Accessed March 16, 2026.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000/Term Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies ICC18B60200, ICC18B60300, & ICC18B60400. Whole Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies: ICC18B60C10, ICC18B60100. Q60000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania & Texas, Policy ICC18Q60200M. In Delaware, Policy Q60200M. Whole Life: In Arkansas, Delaware & Oregon Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Q60000 series is not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Final Expense coverage is not available in New York.
Coverage/plan levels may not be available in all states, including but not limited to ID, DE, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
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Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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