"Now we have a budget to invest in our kids' college funds and our retirement through Financial Rescue's partnered Life Insurance."

Investing in the future after paying off your debts is a smart financial move. Being debt-free provides you with more financial flexibility and allows you to redirect your money towards building wealth and securing your financial future.

Life insurance can be used as a component of an investment strategy, but it's essential to understand that life insurance and traditional investment vehicles serve different purposes and come with distinct features. Here are some common ways life insurance can be used as an investment:

• Cash Value Accumulation: Certain types of life insurance, such as whole life insurance and indexed universal life (IUL), build cash value over time. A portion of the premiums you pay goes into a savings component, which accumulates on a tax-deferred basis. This cash value can grow steadily over the years and can be accessed through policy loans or withdrawals, which may be tax-free up to the amount of premiums paid.
• Tax Advantages: The cash value growth within a life insurance policy is typically tax-deferred, meaning you won't owe income taxes on the gains as long as they remain inside the policy. Additionally, the death benefit paid to beneficiaries is generally tax-free.
• Estate Planning: Life insurance can be a useful tool in estate planning to provide liquidity for paying estate taxes or leaving a legacy for your loved ones. The death benefit can help ensure that your beneficiaries receive a financial payout even if other assets are illiquid or tied up in estate settlement.
• Retirement Supplement: In some cases, life insurance with cash value can be used as a source of retirement income. Policyholders can take policy loans against the cash value or partially surrender the policy to access funds during retirement.