Investment Insurance

[Guest charlesperry]

I wanted to invest $800k in life insurance can anyone help me in getting this. I don't know much about it curious please help me with some good and affordable recommendations.

[david rigby]

Rule No. 1. Insurance is not an investment.

Rule No. 2. See Rule No. 1.

Decide what you want to do: the purpose of life insurance is to provide protection (for spouse, children, estate, etc). Keep investment decisions separate.

[masteff]

A few recent discussions on various issues w/ life ins in a DC plan:

http://benefitslink.com/boards/index.php?showtopic=50199

http://benefitslink.com/boards/index.php?showtopic=49860

http://benefitslink.com/boards/index.php?showtopic=49448

http://benefitslink.com/boards/index.php?showtopic=48297

http://benefitslink.com/boards/index.php?showtopic=47082

http://benefitslink.com/boards/index.php?showtopic=43294

[GBurns]

It would help if we knew what your thoughts were.

Why life insurance?

Why move from wherever it is now?

Why did you post this under 401(k)?

[Bill Presson]

I wanted to invest $800k in life insurance can anyone help me in getting this. I don't know much about it curious please help me with some good and affordable recommendations.

hahahahahahahahahahahaha

Thanks.

[GBurns]

I understand this thread being a source of mirth but because of two recent cases that I saw, I realize that it is a serious matter that seems to be increasing in frequency.

I am now retired because of disability but I do make contact with a few agents once in a while. I also apparently on quite a number of mailing and contact lists and as a result get newsletters and recruiting calls. In the last few months I have received 4 or 54 calls asking me if I would do a seminar or a presentation to groups of prospects. The topic was usually regarding investments in this financial crisis, however, the vehicles seem to be CDs and selected life insurance policies. All the calls were from fairly large specialized insurance brokerages/agencies. Specialized in retirement and estate planning and affiliated with a Broker/Dealer.

I did not think much of it and thought that it was just a cyclical spurt. But then I had 2 calls in mid-November from individuals which made me come to the conclusion that there was significant increase in marketing activity in this area.

Both callers had been approached with the idea of protecting their assets and increasing their investment returns. The first involved 401(k) funds with a person residing in Virginia and the second involved 403(b) funds in Florida. Both had been approached by agents from the same large big name insurance company. Both insinuated that their choice of insurance product was the best way to protect the client's assets. The first case quoted a Variable Annuity and a Whole Life product. The second quoted only the same Whole Life product. There was no definite statement saying that either was an investment, but that is a logical insinuation since the target was the already invested funds which were to be transfered to a better investment vehicle. Otherwise there would have been no point to the sales approach. Both Whole Life illustrations showed a large lumps sum contribution to a accumulation Rider whose catchy acronym I cannot recall.

Both prospects wondered if these were good investments. They regarded the issue as an investment issue because they had no need for, nor was there any discussion of, death benefit.

So the OP seems to be 1 more in what might be a developing trend, of offering a life insurance product to someone looking for an investment vehicle, in such a way that the prospect thinks that it is an investment.