Current government interest rates have led some financial advisers to recommend life insurance as an alternative to federal bonds, the New York Times reports. The returns, while relatively low, are steady, supporters of the idea note.

The arguments put forward by these experts are based on the rate of return and the tax-free passage of funds to the beneficiary. Some have also cited the ability to take out loans against the policy, providing additional flexibility without subjecting the funds to taxes.

"Right now, you have the ability to generate yields that are competitive with other investments," one insurance executive and financial adviser told the news source. He noted current circumstances make life insurance policies more attractive than they would be otherwise.

Several experts noted life insurance policies give the best results over the long-term. As a result, they are suitable for those willing to plan ahead, but may not be an appropriate investment individuals with more short-term goals.

At the same time, these factors must be balanced against the low risk and tax benefits. Consumers who do invest may wish to pay more than required into the policy in order to increase those long-term benefits, experts stated.