Life Insurance As Banking Alternative

[Aakash Deol]

Does anyone use a whole life insurance policy to keep their money rather than in a bank and use that money to invest? I've heard that its much better to put money on a whole life insurance policy rather than a bank savings account and you pretty much become the bank. 

[Thomas Rutkowski]

@Aakash Deol

This thread on BP goes into detail on the concept. 

https://www.biggerpockets.com/...

Just understand that this works with any permanent life insurance. It doesn't have to be Whole Life. Indexed Universal Life works just as well if not better. The latter is what I use personally. As @Mike S. correctly states, you just need to insure that the policy is a maximum over-funded design so that you are not wasting money on death benefit if you have a cash value focus.