Is Whole Life Insurance a Good Investment?

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Today, I got an email from an insurance agent letting me know that there is a shift back to people buying whole life insurance.  My speculation is that there are many life insurance agents who have heard about the Infinite Banking Concept and the fact that whole life insurance policies can be used to create personal banking systems so some agents are thinking that they should now push whole life insurance.

In and of itself, I don’t believe that getting a whole life insurance policy is the best financial move for someone who just wants life insurance.  It costs more, and although you can accrue cash value, its just not a great value up against truly “investing the difference” in what a term policy would cost. As far as what to invest in? I would invest the difference in real estate, a business that produce an additional revenue stream for you, perhaps tax liens, but not the market (stocks or mutual funds).

Don’t confused between what Infinite Banking offers and getting a whole life insurance policy. They are night and day and you will certainly not get the benefit of implementing Infinite Banking just by having a whole life insurance policy.  Most whole life policies don’t have the provisions needed to create a solid banking tool, nor do the agents have the skills to help you set them up.

If you are shopping for whole life insurance, here are some questions to ask the agent:

1. Can this policy be used to set up a personal banking system?  This is not the same as asking “can I accrue cash value and borrow from it?”

2. Do you have a whole life insurance policy?

3. Are you familiar with the Infinite Banking Concept?

4. Have you read “Becoming Your Own Banker” by Nelson Nash?

The answer to ALL of these questions should be “yes”, if not your agent simply isn’t up to date with the market and definitely should not be selling whole life insurance.

If you want to learn more about how to leverage a whole life insurance policy to create a personal banking system by implementing the Infinite Banking Concept, contact me and I will gladly connect you with an advisor who can help you.

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