reiner@cca.UUCP (David Reiner) (05/07/85)
A "financial planning consultant" tied in with the Home Life Insurance Company is trying to interest me in a policy which requires premium payments for the first 4 years, and thereafter only interest payments on the loans against policy value which are used to pay further premiums. At a certain point, dividends (not guaranteed, of course) are sufficiant to pay the premiums and even have something left over, so that death benefits seem to increase slowly, as does net equity. The is pitched as better than term insurance since it is more "permanent" and doesn't have escalating premiums as one gets older, and also because there is a tax advantage from the interest being paid. I currently have term insurance through the IEEE, as well as some provided by my employer. Has anyone out there seen this kind of policy or approach, or come to any conclusions about its quality or assumptions?