06/25/2026
Insurance Rant!
Imagine opening a savings account, coming back later, and finding out you have to pay the bank interest to withdraw your own money. Nobody would stand for that, yet that's exactly how Cash Value Life Insurance works.
You pay the insurance company interest to borrow your own money. Stack on the fees, the cost of insurance, and the pathetically low rate of return and you've got a terrible deal that benefits the insurer and their agent far more than you.
And here's the thing: it's not even an investment. It's insurance, marketed as an investment, often by agents who don't hold an investment license. That's illegal, but oversight in this space is weak enough that it happens constantly. Families pay the price.
The big sales pitch is the "tax benefits" but borrowing money is never taxable. That's not unique to insurance. Trading taxes for high fees and interest payments to an insurance company is just dumb and complicated.
If you ever "cash out," you'll likely owe no taxes either. Know why? Because you didn't make a profit. You "invested" for decades and made nothing. Congrats, no tax bill!
Know who did make a profit? The insurance company.
They took your money, invested it in actual securities, and paid you just above inflation. Just enough to keep you from noticing you were getting screwed.
And the gut punch: if the insured dies, most policies keep the cash value and only pay the death benefit. You bought two things and only ever get one.
If you hear phrases like "Bank on Yourself," "Be Your Own Bank," or "Infinite Banking" run away. If a well meaning family member or friend trys to tell you THEY have the "properly structured" IUL policy. Excuse yourself from the conversation.
