Life insurance isn’t an option that many people tend to think about as a vehicle for saving for retirement. But it’s an option that should definitely be on the list of things to consider. If you are an employee, there’s a good chance that your employer will give you an option of having a 401(k). But is it the best avenue to take to help you build your savings? Or should you pass? After all, 401(k)’s aren’t as popular as they used to be.

So what can life insurance offer that a 401(k) cannot? Why should you at the very least take a look at whether or not life insurance makes sense for you as a strategy for saving for retirement? Keep reading to hear the top 3 reasons.

REASON #1 – Your Money Is Fully Protected

With the financial meltdown that happened in 2008 still fresh in everyone’s minds, it’s easy to understand that when your money is tied to the stock market, although you have the opportunity for large gains at times, you also have the ability to take a huge hit as well. The losses can be substantial, and if you don’t have enough working years still ahead of you to try to re-coup the loss, the financial hit can be devastating.

A life insurance policy provides protection against market volatility, meaning that your cash value in the policy won’t be affected, no matter how awful the market is performing. A 401(k) on the other hand is heavily dependent on the market and it’s performance and is also often more costly in terms of fees for the management of the product.

REASON #2 – Guaranteed Growth

With traditional investment accounts you have the potential for large gains as well as large losses. But these products cannot guarantee that you will never have a loss, only growth. With life insurance you have the guarantee in writing that your principle will grow every year. Even though this growth might not be as large as what you can potentially get through traditional investment products, you will see growth year after year. The level of growth depends on the health of the economy, but it will be a constant upward tick instead of a downward one. So, you might see growth rates between 2-4%, but the guarantees and stability offered are much more valuable than the higher rates offered by mutual funds or investing in the stock market where you have the potential to lose it all.

REASON #3 – Penalty and Tax-Free Access to Your Money

Unlike a 401(k), you can access the cash value of your life insurance policy at any time and for any reason. You will not be slapped with penalties for borrowing your own money before you hit retirement age. You also won’t have to jump through all the hoops to get it.

REASON #4 – Leverage

Another great benefit that life insurance can provide is the ability to leverage your money to create an even larger amount that didn’t exist before. This is because life insurance also provides a death benefit. So let’s say you have $100,000 of cash sitting in a 401(k) and you pass away. How much of that $100,000 will your family actually receive? They’ll get their piece after the government has stepped in and taken out a chunk for taxes. But if you take that same $100,000 and put it into a life insurance policy, not only will you still have the $100k, but that cash will now also buy you a very nice death benefit. Which means that when you pass away, your family will be left with much more than just the original $100,000 that you started out with. And an even better perk? Uncle Sam won’t get a penny of it, as the death benefit in most cases is received tax-free. Now THAT’S a great return on your investment!

These are only a few of the benefits that life insurance can offer you over a 401(k), but clearly there are plenty of reasons to consider adding life insurance to your retirement plan.

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