Wow - blast from the past.
Catching up on this. @gsoda3 If you pull out policy loans from permanent insurance, they are not considered income at that time or any time in the future as long as the insurance contract stays in force and you either pay the loans back or cooperate and die with the coverage in place. If the policy lapses prior to death, and you have loans outstanding, you have a tax bill dropped in your lap.
As for what to do if relatively early in life with adequate term insurance and a long time horizon - the general answer would be to fund 401(k) and / or IRAs to the fullest extent allowed, then save as much as one could post tax in low fee and tax efficient investments (index funds or etf’s in a schwab or fidelity account for example).
Permanent insurance is useful in strategic situations, but not nearly as often as it is sold. It’s not a bad product, in and of itself even though a lot of people feel somehow righteous in declaring it so. But, Unless you have a unique situation with dependents or health issues or just have so much excess cash flow that you want to do some estate or charitable planning... it’s probably a low priority for you.
Both sides of that same coin- the guys who pushed permanent insurance at every turn vs. the guy who thinks it’s criminal in all cases. Neither is right.
Pick the right tool for the right job and know what the tools are built to do....beyond the sales pitch or anti sales pitch.
Personal finance is 90% personal and 10% application of product. You have to identify the goals and needs and then Pick the tools and techniques to get you where you want to go- then stick to the plan!!!!!!!!! keeping in mind that that’s also ever changing.
On the long term care deal, there is some merit in the 50+ crowd looking at taking a thin sliver of assets each year and putting them in a hybrid life / LTC policy.
Unlike straight LTC insurance, there is what amounts to a return of premium and then some in the form of the death benefit if you don’t use the LTC.
Its an intriguing concept because as was mentioned above, straight LTC insurance is incredibly expensive and the hybrid policies let you lock in a cost and benefit with at least some guarantees on the back end. Worth a look if you have assets to protect and cash flow to pay for it.