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@resjudicata That's understandable. It seems like this thread went on a bit of a tangent anyway because in my original post I tried to indicate that I'm not really looking to dismantle the existing policy so much as I am looking for a recommendation for where to get an additional policy that is...

@resjudicata It seems Iike the policy I have, which is described on the title as simplified whole life, does not fit into the mental model that everyone is describing. This particular WL policy is a 250k death benefit. When I turn 65, I will have paid 88k in premiums. The accumulated cash value...

@resjudicata Mine is a pay until 65 policy. If I understand it correctly, I am not able to overfund it's but I guess I need to verify that. Also, If I understand it, my accumulated cash value does not offset the amount that the bank is"on the hook" for the death benefit. Instead, my accumulated...

@sonriseforever Yeah you were right and I gave you bum scoop. The borrowed amount does not effect the interest earned by the cash value so it appears to be NDR. Seemingly I was also mistaken about the 4.5% though. See lengthy math reply below

@futuredreamer I was mistaken. It appears to be a non direct recognition policy. I am not sure about the 4.5% though. I think it is less. See my lengthy recent reply for the math on it

@sonriseforever Mine takes 2 years to accumulate cash value. I started it in May 2020. I have a hunch that it's direct recognition but I don't see anything in the contract that uses that term or about a different rate for the borrowed amount. This is what got me thinking about getting an...

@sonriseforever The policy is with USAA. Don't get me wrong, I plan to keep the whole life policy, I'm just not planning to use it to borrow from. Your math has me confused. The way I understand the policy, if I borrow from the accumulated cash value, only the net cash value remaining...

I feel like I already maximize my available tax advantaged investment vehicles (Roth, employer sponsored retirement savings plan, etc) and I already have both term and whole life policies. I am employed now but expect to be self employed several years in the future. I also expect the need to...