Life insurance

[Edwin E.]

To all BP members,

Just wanted to know what experiences you have had regarding Life Insurance options, and what you are using concerning this "investment" method. I am in the military (notice photo:) and was asking some questions concerning our SGLI (Servicemembers Group Life Insurance) and realized that when I get out (will not be retiring) that all the money I have put into that life insurance vanishes, upon my exit.... Talk about depressing. The kicker... the military REQUIRES that you carry a minimum of 250k through this policy, they also offer up to 400k coverage for a total of +$26. per month. I choose this option almost 10+ years ago. SO based on NO interest, I am still missing out on over $3200 that if I had a civilian policy I could have had (+ interest for the past 10+ years) and possible be able to re-invest that portfolio into RE.

SO my question is what are some of your, BP community, choices when connected to Life Insurance, and what are you paying per month, if that's something you choose to disclose. Also I have heard that savvey investors are able to use their L.I. policy to help fund RE deals, is this true? Seeing as I have 1 1/2 years left this is a concern and an issue I am starting to look into.

[Bryan L.]

You need to speak with a life insurance agent. There are two basic types. One that builds up cash value and one that only pays in the event of your unfortunate demise. From what I understand, the cash-value type has a pretty poor rate of return, and the monthly premiums are higher than the death-only type. My guess is that you currently have the death-only type with good, low monthly premiums. Try this link below from Dave Ramsey.

http://www.daveramsey.com/articles/article/articleID/the-truth-about-life-insurance/category/lifeandmoney_insurance/