Indexed full life insurance?

1 Reply

Good afternoon bigger pocketers,

While going through the motions of moving out of my first rental, I came to the reality that my asset assets far exceed my current life coverage.  

I contacted an insurance sale person. She informed me that the Index whole life is the one for me.   I realized then that its hard to shop when I don't know what are competitive products.

Can anyone tell me what are some of the best products out there and features.  I liked the fact that the index was tax sheltered, had a slew of other than death benefits and you could borrow against it.

I know that this is not an insurance site, but I image that this community, over most others would carry some of the best coverages around.  Just hoping sure I'm building on a rock.  

Thanks in advance.

Hello @Troy Kerr . Just came across your question posted back in August. Hope you found some answers by now. I'm surprised that no one else had responded to your question yet. I'm not sure how "indexed" life insurance might be from what's commonly known as whole life, which is a life insurance and investment in one. I believe that the policy holder can borrow against it up to some percentage of the total benefit. Of course, there are stipulations that come with it. Personally, I've shied away from those policies when I was looking at it from an insurance coverage stand point. Many people would argue that term-life policies are better and one can "invest" the difference in premium where one chooses vs. being locked into the limited returns of the whole life policy. 

I attended a local REIA meeting where this type of insurance policy was mentioned as a possible source of financing for investments. Like you, I started research it a bit and that's how I came across your question/post here. I simply ran a search for "life insurance" here on the BP site. A number of possible hits came up. I'm wondering if you had a chance to check them out to see if they actually answer your question. Here are some links:

https://www.biggerpockets.com/search?utf8=%E2%9C%9...

https://www.biggerpockets.com/forums/56/topics/577...

https://www.biggerpockets.com/forums/50/topics/100...

Personally, I would want to find out more about under what criteria or circumstances i would be able to borrow against the life insurance policy. Seems a little too good to be true, but I'm still re-learning more about it as well.

Take care.

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