Is Whole Life Insurance a smart investment to diversify?

[Brian Nordman]

Alright, so I've done some research into Whole Life Insurance and I think it has some awesome benefits. In my research though it seems to be pretty equal between the people who strongly advise against it and for it. One thing I like about it as that after you've built up some cash value in the policy you can take out a loan on the cash value at rates generally lower than the banks. I'm just curious how many of you out there have thoughts on this type of investment vehicle and whether anyone has good or bad experiences associated with it?

[Paul Allen]

@Brian Nordman While permanent insurance (Whole Life, Universal Life, Variable Life, etc.) products do have some interesting possibilities, I am in the camp that believes insurance products and investment products should not be combined. So, I am a term insurance guy.

The exception in this regard is for people who have high net worth and are trying to manage their estate tax issues. Insurance products can be quite useful in those situations.