Unusual Investments

Alternative Investments | 150 ways to invest your money

150 Types of Alternative Investments – The List

139. Universal Life Insurance Side Accounts – universal life insurance will typically include an investment account in addition to the death benefit.

The investment account might have an interest rate which is guaranteed by the insurance company.

While American tax law limits the amount that can go in, savvy Canadian investors took advantage of no such limit either by tax law or the insurance contract itself to invest vast sums of their money and the money of outside investors into the side accounts at interest rates that were well above market.

BMO’s insurance arm sued to try to get out of the insurance contract which guaranteed interest rates that ended up being well above market.  They argued that the amount someone should put into this account should not be unlimited.

NEXT PAGE ➜