Given the changing economic situation, people are seeking solutions that will provide a guaranteed benefit, premium and cash value. One often overlooked answer is whole life insurance, said Michael Fanning, head of retirement and insurance at MassMutual.
"Whole life makes sense now more than ever for your portfolio because it offers guarantees in what is becoming an increasingly volatile market environment," said Fanning.
As to how insurance fits into an investor's overall portfolio, Fanning said insurance should not be looked at as a "standalone investment."
"It must be viewed within a holistic approach to a portfolio," said Fanning. "To do this, financial advisors need to help you develop a plan by identifying your values and then executing on that plan to secure your financial well-being."
Fanning said millennials in particular should consider adding insurance to their asset mix, although not necessarily whole life. Because the most important asset millennials need to protect is their income, the need for disability insurance may be more critical than life insurance. As they progress in life - get married, buy a house, have kids - then their priorities may need to be adjusted and life insurance will be more of a necessity.
Fanning added that making a financial plan that includes insurance can ease stress of everyday life, especially when things are fluid.
"Whether you're doing something regularly to pay down debt or arranging an automatic monthly withdrawal to help you save, having a plan is a good way to put yourself back in control, stress less, and feel better, both physically and mentally," said Fanning.