Should You Use Cash Value Life Insurance as an Investment?

Should You Use Cash Value Life Insurance as an Investment?

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[colin]

Do you ever notice that the people encouraging to do this also happen to be selling it?

[jordancaballeromedia]

I have my life and health license and appreciate this video. To me, term life insurance with living benefits and some kind of estate planning are crucial. Investing traditionally or with cash value life insurance is optional and debatable with each different scenario.

[wysbbsc]

I am licensed for all insurance besides variable, and looking to get my series licenses for securities. Cash Value life insurance policies have great utility in specific circumstances. Traditional investing is great, but it depends on what you want to do. If you want completely protected income in the way of lawsuits, divorce, and other life events it is great; at least in my state. It is also a great part of a portfolio. However, otherwise, I think mutual funds and other traditional investing is the best way. It all depends.

[alexsmith]

Insurance is not an investment.

Policies that restrict you from borrowing against your policy as mentioned in the video are structured for INSURANCE, not Cash value. Not all carriers support max cash value accumulation in a WL policy. These are two completely different types of policies.

Some do support max cash accumulation and you can borrow in some cases 90% of your cash value in year 1. To imply that all policies cash value is locked up for 7-10 years is not correct

You have to find the right carrier and the right product with that carrier

[GIPgarden]

Just wanted to let you guys know. It was maybe a few months back or last year that I was listening to you guys talk about this and I ended up getting term life for 20 years. I feel like we made the right move for us

[adam]

IF its whole life, and is designed for the LOWEST base premium (typically 15% of the total premium), that's a much smaller commission to the agent. The "surrender" period is only with IUL and VUL's, not whole life.

Example: say you put in $100k of premium up front (and it is designed for maximum cash value), within 30 days you are liquid with around 75-85% of the full $100k. I LOVE you guys, and i really appreciate your open minds to this stuff!!! It really depends on how the policy is designed, that is the end all be all. I have 4 of these policies and am in year 6, happy to share how they are performing :) I do "sell" the same products i personally have, so... i am also happy to share the exact commission splits i receive. You may be surprised :)

[txbiker]

Im glad they spoke to this. I have been blasted by these videos as well. I knew there was a catch.

[andyk]

So much of this video is accurate. Brian clearly understands some of the intricacies…. But I’m so surprised that he compares cash value life insurance to the S&P 500 etc. in a portfolio the comparison should be vs cash and fixed income products eg bonds/annuities… (in fairness he does mention these too)…But it offers a tax efficient alternative to some of the other fixed income products. That’s where it fits in. From an insurance point of view it’s not a straight comparison to term insurance.

[stephenroberts]

My employer has a small life insurance policy as a benefit. There's also the option to buy additional coverage very cheaply. But, I really don't need anything beyond the basic coverage. I don't have a mortgage, no dependents and no spouse. And drumroll please.... no debt. At all. All I need is enough to cover burial/cremation and funeral.

[kennethwers]

Everyone already has a annuity they're forced to buy. It's SSA.

[hlub]

Thank you so much for sharing your valuable info. Just know you are changing lives

[jenniferschultz]

What about for a buffer asset in retirement. If you have a stock portfolio can you then have the Whole life cash value to offset a certain number of years of down mkts so you don't have to pull from portfolio during those down years. Wade Pfau wrote a white paper on this and it seems to make sense.

[tricord]

What “unique government rule” allows you to take loans “from your cash value”?

[tricord]

@ 6:53 you say you don’t love things where I have to borrow my own money from myself to get access to my capital” Are you sure as a fiduciary, that is an accurate statement?

[tricord]

Are you saying the first year premium goes to commission? Are you absolutely sure?

[colinmorrison]

Can we have a financial mutant show special for us 20 year olds? Give us the numbers for being in the top 5%, 1% of people.

[Carlos-enws]

This advise is why Americans will work til 70s... term runs out and life insurance gets more expensive not cheaper. God bless, I hope that 401k works out 🙏 .

[ds]

No. Buy term and invest the difference. I just got my life insurance license and only sell term to young families.

[geraldscheinman]

There are so many fallacies in this.
What happens to your investments if you become sick or unable to work?
This is where the disability rider on an insurance policy can be very valuable .

[jeanjasinczuk]

I do not believe the explanation on how the insurance company invest the money is correct. The insurance company does not invest at all directly in the stock market. For "index life insurance", it invest a very small portion in options. The options can expired worthless, therefore in that year there is no increase. Or the options can get a "participation" if an underlying index moves up. I do not disagree with the conclusion that buying term life insurance and invest the rest in the market is a better way for most people. But at least you should describe more accurately how it works. Note that trying to replicate how the insurance company invest the money would be very difficult for most investors.