Why do REI dislike or avoid life insurance?

[Brook Vosler]

As a real estate investor and financial advisor I usually understand the mindset of other investors. Individuals in real estate are usually more willing to take on risk which is often rewarded. I understand REI's usually deploy a large portion of their capital to advancing their real estate portfolio... but it seems like they dislike or do not understand life insurance. When I start to work with REI's I expect them to invest less of their income into traditional retirement accounts. I also expect them to find value in benefits like life insurance and disability, but that has not been my experience. Why is this?

I also understand disagreeing with the infinite banking concept Brandon has talked about with whole life insurance but it seems like the large majority avoid life insurance in general.

Those in the industry full time... help me understand! How can I better convey the idea to real estate investors? 

[Steve Vaughan]

Originally posted by @Brook Vosler:

I also expect them to find value in benefits like life insurance and disability, but that has not been my experience. Why is this?

I also understand disagreeing with the infinite banking concept Brandon has talked about with whole life insurance but it seems like the large majority avoid life insurance in general.

Most of us I would think have the best value insurances out there - term life, liability umbrella policies and liability hazard insurance per property.  

My wife and I are literally insured for $2.5M for less than $1000/yr with term life and umbrella insurance. Then there's the millions in property hazard liability coverage we get for tens of dollars per month per property. 

Disability insurance?   High cost for already having passive cf that more than covers my not 'working.'  Too hard to quantify something that's a % of a w2 a lot of us don't have anyway.  

Same with long--term care. High cost. If I go into a home, I'll own it most likely or buy it while there. We have a different mindset than employees.

And don't get me started on whole (hole) life.  The costs and fees are outrageous.  Why are producer commissions so high?  If I want to invest the difference in premium costs vs term, I'll invest it. My heirs will also get to benefit from the 'cash value' of those separate investments when I die.   

in summary, we're not anti-insurance.  We can do cost/benefit analysis and are anti high-cost/ low benefit.