Permanent Life Insurance as part of portfolio

[Jason DelCollo]

So my wife and I have been fortunate financially through hard work and lots of schooling. Long story, as short as possible, we are mid 30s with $600,000 retirement/investment portfolio. We max out 401ks and backdoor Roths for past 3 years. We also contribute $5000 to daughters 529. We save about $50,000+ in addition to above and invest in taxable (small amount) or keep cash reserves. We have suitable insurances, including Term Life. 

We are considering pursuing a yearly HECV WL policy for between $30k and $50k annually. The policy design allows high early cash value and we will only make payments for 5 years and the amount will continue to grow. 

We plan to use this as part of Emergency fund also as a start to investing in Real Estate by using policies as collateral or borrowing from policy. 

We never would of considered this plan unless we already maxed out tax deferred accounts. The relatively low IR/Dividends of the policies are a small concern but I've examined scenarios of WL and term and invest the difference. 

Any input would be greatly appreciated. 

[Dave Van Horn]

@Jason DelCollo

I've borrowed out of my policy many times to invest in real estate and notes. I even started a company with money from a policy before, that I still own today. It's a really fast and easy process too to borrow, not like getting a loan from a bank. Plus this money is tax free since it's a loan, it's a safe bucket (from BK and lawsuits in most states), and it transfers favorably to heirs as well.