Cash or Whole Life Insurance Policy? ? ?

[Cassidy Burns]

Hey BP,

I had this conversation with another RE investor today, and wanted to see what the forums thought.  

IF you have a larger RE Investment Cash Account ready to go for your next investment, would you rather keep it in cash or pay up your additional riders in your whole life insurance policy? 

**this is not all of your cash this is only cash you use for RE Investments**

**Life insurance policy is 4.25% to borrow against**

Lets keep this educational and not argumentative please

Thanks ! 

[Mike S.]

All my free cash flow goes to the life insurance. When I need some back for investment, I take a loan out from a third party lender (not from the insurance company) so I can deduct the interest as investment expense. Most of the time the arbitrage between the loan interest and the interest gained in the life insurance is positive. On the long run I love putting my money to work at two places at the same time, and get a 'free' life insurance on top of it.