Haha, thanks. But I would love more details and information if possible rather than just "don't do it" so that I can learn. (:

I have major issues with how they do whole life policies. If you need life insurance there are worse things to buy. But telling you that you'll get an 8% dividend should be criminal. The basic jist it isn't an 8% return. It's basically the non insurance version of this.

I say Bob go get some some propane at the store for the grill. He says ok. I don't know what it costs. Give me 40 bucks. I say ok. Then he comes back and goes hey good news it was only 20 bucks. Here is 20 back. You just got a 50% dividend.

I didn't make 20 bucks in this transaction. The IRS treats it as an over payment hence the "tax free" return.

If you whole it till maturity it's maybe like a 3% real return. But you also only either get the cash out or the death penalty I think. And I'm not sure you get which is larger if you die. Like if your cash out is 1 million and the death is 750k you might just get 750k if you die. But I don't need life insurance as I get it though work so don't quote me on that.

Also take this stuff to personal finance.