Thank you @Frank S. @George Carnicle @Derek Lacy @Bryan Hancock @Steve Kordish, this is exactly what I was looking for when I turned to this community. To be specific, I am less interested in the death benefit (life insurance) aspect of this plan. Paradigm Life is asserting that using the whole life insurance policy in the way they propose is a better alternative than keeping money in the bank because of the following:
- the returns are considerably higher
- i can access the profits tax free through getting a loan against the policy
- even when i take a loan against the policy, the entire cash value is still earning dividends and "guaranteed" returns.
The agent has been upfront with me that the first few years of the policy are going net high losses because of the upfront fees, but over time, 5-7 years, the policy returns will make up for the initial fees and I will start being able to access my cash through loaning against my policy while still seeing my policy grow.
@Derek Lacy, can you speak more about the time horizon and returns. The policy my agent is proposing is saying I will be at about par within about 6 years. Of course that assumes that the returns are what they say they are. He says that initially the policy will return between 3-4% net. That includes the dividends and guarantees combined. Does that sound logical?
