This won't be a question for term purchasers, but those eyeing permanent policies should be prepared to wait several years before their policy will start generating positive returns.
"Expect that 100 percent of your first-year premiums will go to issuing the policy," says Behrendt, adding that most of it will be paid to the agent as commission.
He says permanent life insurance policies are designed as long-term savings vehicles and can take anywhere from five to 10 years to generate positive returns. New purchasers who see green in their immediate future could be sorely disappointed.