Life insurance, an investment

LISTEN TO AN INSURANCE SALESPERSON FOR EVEN A few minutes and you'll come away convinced of one thing: Life insurance is so insanely complicated you couldn't possibly understand it, so you better just buy some quick. Self-employed people, in particular, are targeted by an industry that would have us believe that its policies are the tax-favored ticket to comfortable retirement, college funds, and the orderly transition of family businesses. They'd like to sell you a policy without even mentioning the words death benefit.

But don't invest in life insurance unless you need that death benefit. Life insurance carries commissions, fees, and charges (including the so-called mortality charges that pay for the death benefit) that most mainstream investments do not.

Still, death benefits are what life insurance is all about for any worker, self-employed or not. If you have a family that depends on you for money, you need life insurance. That's not so complicated, is it? If you already know you need life insurance and want to add a few investment wrinkles, there are products that do that. Here's your orientation to the world of life insurance.