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Thread: Life Insurance as investment?

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    Default Life Insurance as investment?

    Hey everyone-
    I was talking to a few girls at work about investment strategies and a few brought up the subject of life insurance. I had a woman try to sell me on a policy about a year ago, and felt the idea was rather 'fishy'... Has anyone heard of buying life insurance policies, strictly as investment purposes? Without having children or dependents? Every article I read screams NO, but I thought I'd throw the question out there.

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    Default Re: Life Insurance as investment?

    That would be pointless. The reason to buy life insurance is so that your children, aging parents, or someone else who is dependent on you will be taken care of " in case" . If you have no one dependent on you, it's a waste of your money.

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    Default Re: Life Insurance as investment?

    there is a life insurance tax minimization strategy that is often used by persons with a substantial income level that live in high tax rate states ...



    I have one of these life insurance setups myself ... albeit a comparatively small one. If you need to carry life insurance anyhow, and if your combined federal and state tax bracket is in the 25% plus neigborhood, the Variable Universal Life setup can be a useful tax saving tool.

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    Default Re: Life Insurance as investment?

    Agreed with Melonie, but only for high tax bracket people who have already utilized all other tax efficient and tax advantaged options out there, as it is an expensive investment.

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    Default Re: Life Insurance as investment?

    I don't know much about this, but I have heard about buying traded policies. In the UK they are traded endowments and can prove to be profitable. In the US I believe they are universal life policies that are sold. I think the word is viatical.

    If that is completely off target, or useless, please ignore. It was a very long time ago that I read about this...

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    Default Re: Life Insurance as investment?

    I've met a few girs who try to sell me on these weird life insurance-as-investment strategies that they can barely explain themselves. I don't know if you're talking about the same thing, but if so, obvious pyramid scam.

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    Default Re: Life Insurance as investment?

    Quote Originally Posted by scarlett_vancouver View Post
    I've met a few girs who try to sell me on these weird life insurance-as-investment strategies that they can barely explain themselves. I don't know if you're talking about the same thing, but if so, obvious pyramid scam.
    Strippers trying to sell those? I will break it down for you VERY specifically whenever we finally meet, I am the master.

    I've never done anything with the traded policies though, Stuart. Its just not part of my mix.

    Oh, and people will try to sell them to you because the commission on them is really fat. But its not for everyone.

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    Default Re: Life Insurance as investment?

    A FA tried to sell me one a while ago. I got a second and third opinion on it from other FAs that I now use. They showed me how I could make more money in my own MFs. I have no need for life insurance and now I am happy with my investments.

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    Default Re: Life Insurance as investment?

    Quote Originally Posted by Katrine View Post
    I am the master.

    I've never done anything with the traded policies though, Stuart. Its just not part of my mix.
    Such modesty...

    I wasn't suggesting that you do/did sell these. I was merely mentioning that I had read something about them as US based life assurance investments. That was it.

    Sorry for any offence caused.

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    Default Re: Life Insurance as investment?

    Quote Originally Posted by StuartL View Post
    Such modesty...

    I wasn't suggesting that you do/did sell these. I was merely mentioning that I had read something about them as US based life assurance investments. That was it.

    Sorry for any offence caused.
    No offense caused, honey! I sure do love the British right now. Perhaps my statement was boastful, I am pretty good at breaking down complex investments in general, have learned from some true masters.

    I have just never looked into traded policies, although I am also familiar with them.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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