<prompt> Human: My Grandma has had nearly 50k locked in a CD for the last 10 years. Its matured to 50k. Apparently some insurance company has called and offered to take that 50k in exchange for a 150k insurance policy. I feel like she is being scammed or throwing a lot of money into a very risky investment. She is 72 and I just want to be a good grandson and help her do the right thing. I would recommend to her that she puts it back into a CD even though the rate would be a lot lower. Should I be concerned get involved?  <response>: Insurance policies are one of the very few ways to pass wealth on with minimal taxes. If this 50k is purchasing a single premium you only pay one premium for the life of the policy and this is done at the time of issuance insurance with a 150k death benefit that means that a different investment would have to increase in value over 100k in 20 years to pass on a comparable level of wealth to her heirs beneficiaries. Considering her age and the death benefit involved, I would assume this has to be term insurance and probably a bad idea.However if it is a single premium whole life policy then, this needs to be money she will never miss. If there is any chance she will need that 50k, the insurance policy will take a big hit in terms of value or fees if she taps into part of the cash value or surrenders it. 