[wideawake]

If I read the article correctly the only way to collect on this is after the death of the insured. So it really isn't an investment as long as you're alive -- unless you can borrow against it like Panera Bread did according to the article.

It isn't the collecting that's so important.

If you've got a whole-life insurance policy you can manage the contributed funds as you please and when the fund is eventually liquidated, instead of being hit with a capital gains tax, the money is tax free.

Saying that the policy isn't really an investment while you're still alive is like saying that your retirement savings aren't really an investment until you retire. Untrue.

If you put $10,000 of retirement money into your retirement account and the stock shoots up 100%, you now have $20,000 in your retirement account. Just because you can't draw on it today without penalties doesn't mean it isn't an investment. It's still part of your net worth.

Likewise, when a company that invested $5,000,000 in employee life insurance sees the money invested in that insurance shoot up to $10,000,000 it now has a $10,000,000 asset on its balance sheet, which strengthens its credit profile and adds to the company's inherent value.

That's just wrong.

If she wanted to pay the premiums, my wife could take out a $1,000,000 policy on me tomorrow without telling me. Is that just wrong?

[bvw]

Not as wrong as these junior (or naif) Murder Inc. contracts. More money than she is accustomed to live on, therefore she benefits in your death. Not a good thing, eh?

I wonder if Dr Jack Kervorkian had a "policy" on his first wife?

I definitely do NOT want anyone having a "policy" on me!

[Restorer]

If she wanted to pay the premiums, my wife could take out a $1,000,000 policy on me tomorrow without telling me. Is that just wrong?

Well, if I were you I'd be a little nervous!

[TroutStalker]

If she wanted to pay the premiums, my wife could take out a $1,000,000 policy on me tomorrow without telling me.

But it might be difficult for her to arrange the physical without your knowlege and participation.

[lelio]

my wife could take out a $1,000,000 policy on me tomorrow without telling me. Is that just wrong?
Yes, it is. According to the article in order to buy insurance you have to show that the person is worth 'money' to you alive, or else people could go out there and start buying insurance on gang-bangers.
If an insurance company let your wife buy insurance on your life they owe it to you to tell you about it as you're affected by the insurance.