It's very reasonable to borrow against assets for leverage to purchase real estate or more assets, but permanent life insurance is nothing but a money pit for everybody but the most wealthy who have an estate tax problem. If guaranteed, then the returns are usually marginal, less than what you'd get on a 10-year treasury. If variable returns indexed to some benchmark, then you are of course getting The benchmark return minus the amount that the insurance company takes for their profit. Might as well just invest into a taxable brokerage account in a fairly conservative fashion and then borrow against that and rid yourself of the fees associated with a permanent insurance policy.
To add to this, I don't of any institution who doesn't report a LOC to the credit agencies, regardless of what collateralized it. Roughly 24 mins in when this guy says he knows a easy to do it
It's very reasonable to borrow against assets for leverage to purchase real estate or more assets, but permanent life insurance is nothing but a money pit for everybody but the most wealthy who have an estate tax problem. If guaranteed, then the returns are usually marginal, less than what you'd get on a 10-year treasury. If variable returns indexed to some benchmark, then you are of course getting The benchmark return minus the amount that the insurance company takes for their profit. Might as well just invest into a taxable brokerage account in a fairly conservative fashion and then borrow against that and rid yourself of the fees associated with a permanent insurance policy.
To add to this, I don't of any institution who doesn't report a LOC to the credit agencies, regardless of what collateralized it. Roughly 24 mins in when this guy says he knows a easy to do it