Agree!!

This would be extremely helpful!

Yes Please!!! Whole Life plans have 1) premium 2) death benefit 3) cash value

The cash value is an asset (like the equity of a home), which can be borrowed against (so loan repayment modeling) or can just have $ drawn down from (tax free). In most cases, the cash value disappears after end-of-life with none being left to any benefactors (that is what the death benefit is for). So model would have to show cash value gone ($0) at end-of-life.

The premium, cash value, & death benefit all have their own schedule of growth over time, so each of these components would need the ADVANCED (actual dollars) function to model out what premium/cash/benefit is at any given age.

Currently, I can model the premium as an expense (with advanced change-over-time for costs), model the death benefit as a one-time income event (though I can’t model out death benefit growth, so just taking value from schedule for the guesstimated end-of-life payout), but I trying to model out the growing cash value seems to be pushing the limits.

Best way I can think at moment is an income event showing yearly growth that funds a savings account (0% interest). I can’t figure out how to drain/close that account at end-of-life.

Oh…would like model using the Whole Life Cash Value to fund my LTC Insurance premiums.

So yes please on this ability :)

This feature would be very important for me. The LIRP (Life insurance Retirement plan) is an important part of my modeling. What would be awesome would be to be able to use whole life loans as a volatility buffer (simulate the impact of taking money from Whole Life loans instead of 401k in years the market is down).

This is a really important feature. I have had to kludge it with a one time income event at a guessed value in the future. It would be better if the logic can offer the actual rules of a Whole Life policy and then abide by them, particularly for borrowing. By the way, taking some of the cash value is NOT always tax free. I explored this in detail with Northwestern Mutual and they give you a 1099 if taking cash value early for a real estate purchase. Huge to get this right in the planning stage.

Hi Hippo, can I ask you if they are giving you a 1099 for ‘taking’ the cash value (i.e. withdrawal of premium and then even withdrawal of accumulated cash value versus a loan with the cash value as collaeral which is more the infinite banking concept / Nelson Nash idea). I’m asking not to challenge you but to learn because my plan was to do this in the next couple of years to fund my own early retirement. So if it doesnt work, I’d rather know that now. Thanks!

Withdrawals are tax free up-to-the-point of the baseline dollars you put into the cash value, pulling $ over what you put in becomes taxable. Think of it as getting taxed on your gains…

Your financial planner / insurance-agent should be able to talk you through that.

I was not talking about taking a loan, but “accessing” part of the cash value ahead of time for a real estate purchase. I was told I would receive a 1099 for whatever amount I received. Therefore I decided not to proceed because it would be a tax bomb.

OK, clear, thanks, Hippo. I think the normal way to access the cash value is to loan against it, not withdraw it. Or withdraw up to the basis of premiums paid and then borrow. Now having loans that you don’t pay back growing at compound interest rates is scary, for sure. But the idea is that the cash value is growing at a higher rate. So you never pay it back, the death benefit will. Obviously you don’t want to run this too tight and risk the policy lapsing. I found this video quite helpful to explain the process, maybe it might help you. https://www.youtube.com/watch?v=neOXYLUnS30 Best of luck! David.