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An entire generation is missing the boat on the opportunity of a lifetime. In this world filled with uncertainty, Millennials are increasingly shaky on investing. Socking away money into a volatile stock market isn't as appealing as it once was. The advice of our parents, while still valid in many ways, may need a generational adjustment. The question is, how can we mitigate risk without sacrificing growth. The answer is Permanent Life Insurance. Particularly, Whole Life or Indexed Universal Life Insurance. This isn't the first thing you're taught about money, if you're ever taught it at all. Explaining these policies isn't the simplest thing to do, which means a lot of people don't understand them or care to put in the time to learn about them. This is leading Millennials to miss the chance at benefiting from Permanent Life Insurance, the same way the wealthy has for a long time. Depending on how the policy is designed and what carrier you decide to use, here are some Pros & Cons: Pros: Option to pay for a period of time Build Cash Value through dividend or stock market gains If you choose an Indexed Universal Policy, your market exposure cannot fall below 0% per year. Tax Free Growth & Withdrawals Can be used to pass wealth to beneficiaries Ability to loan cash from the policy WITHOUT sacrificing the growth of your cash value Defined OR Flexible Premiums Unpaid loans upon death will be subtracted from Death Benefit Great tool for "forced savings", the same way a mortgage is used Cons More expensive than term insurance Cash Value takes a while to build up If stock market return is 0% in an Indexed Universal Life Policy, fee's will still be charged. Dividends of a Whole Life Policy are not guaranteed, though you will not lose your principle. Of course, there are fees involved and you should understand what they are The reason this post is mentioning Millennials is because the premiums will only go up with time. The younger you are, the better rates you will get with a Whole Life or IUL policy. Don't be intimidated by these policies, which can be complex in many ways. And definitely don't make a decision without talking to your broker. The above bullet points are just a high level overview of the benefits and drawbacks of these policies. That being said, they can be an integral part of your financial planning process. While I don't advise they should be 100% of your investments or that you should dump your financial advisor, they can play a part of diversification and risk mitigation. Exciting stuff! What are your thoughts on Permanent Life Insurance??? Disclaimer: This article was written by a licensed insurance producer, not a financial advisor. Please, do not rely on this to make any financial choices without consulting a financial professional.