Investment grade insurance

[Troy Layne Pierce]

Hey all. My father in law is about to retire this year. He invests in real

Estate with me and has a 401k from a W2 job he worked for his entire career. Recently he has come across a law firm called fortune firm in Nevada. They offer investment grade insurance policies using whole term life insurance. For several thousand dollars they offer to move his 401k into this policy that involves setting up 2 LLCs and will allow him to borrow against his policy at 4% interest while earning a guaranteed 5% on the principle amount in the policy. The money is mostly non taxable, offers tax free distribution to heirs upon death, and has a $4 million payout for the life insurance portion of this. My opinion is it all seems too good to be true, but I hate to be a naysayer just because I don’t fully understand it. There has to be a catch right? I understand that for someone younger like me it is probably better to just have term life insurance and invest the rest on my own for a much better return, but what about for someone like him at retirement age that doesn’t need a large rerun anymore and just wants security and tax sheltering? Seems like a great option but again what is the catch here?? Any honest feedback on this would be greatly appreciated. I don’t want them making a decision they may regret later on. Thank you all