I ran across a couple of threads at Financial-Planning.com about Missed Fortune 101 by Douglas Andrew. If you've read my previous posts about this book, you know that I'm not a big fan of this book.
Anyway, here are a couple of threads by financial planners — some of them very heavily credentialed — that discuss the book:
Thread #1 on Missed Fortune 101
Thread #2 on Missed Fortune 101
There is a lot of discussion about the insurance aspect of the book — frankly, this goes over my head a bit, but you may understand it better. The comments in the first thread pretty much speak for themselves. The second thread — we'll see where it goes, but I include it for completeness.
What little I do know about insurance is that it's not like putting money into a tax-free savings account that you can draw on whenever you want. All I have to do is look at my own life insurance statement of account to see that the cash surrender value is only a small fraction of the two years in premiums that I put in. I understand that I'm protecting against the unknown, so if I kick the bucket tomorrow my family will get a nice lump sum. But do I consider it an investment? Not at all! I have it because I don't have the cash to cover my family's future needs.
But after reading the first thread, I'm more convinced than ever that Mr. Andrew's investment strategy is extremely risky. There are too many things that can head south.
If your policy was not structured specifically to minimize the death benefit and to maximize the cash value accumulation (in other words, if you got the insurance for the purpose of life insurance) then it is not even an example of this concept…plain and simple