Guidance on VUL policy

So I’ve done my reading around here and it seems like VUL policies as an investment vehicle are almost universally (no pun intended) disliked.

However, I’m really trying to understand why and would appreciate an ELI5 if possible.

Basically what’s being proposed to me is a NYL policy with level premium of $350 until the age of 55, with an increasing death benefit that starts at $150k. The interest rate on policy loans is 3%.

I’m currently single and have no dependents. Personally, I’m skeptical because of the complexity of these plans (I feel like there are things I’m missing) and the hypothetical 8% return. FA suggests this is very achievable, and that the taxes I would have to pay from an investment account negates any benefits of avoiding the VUL completely. (Note: I do have an investment account, they’re just suggesting not to completely ignore the VUL because of the potential for tax-free loans.)

I also recently switched from another FA who got me into a bad policy several years ago, so now I have a bad taste in my mouth despite this policy seeming better on paper.

The other reason I’m skeptical is if I were to compound $4200 for the same 28 years at 8%, I’d get ~$400k, which is more than the $314k I’d have in this policy. Compound that for another 11 years and I’d have ~$933k compared to the policy showing I’d have $688k.

Am I looking at things right? Does anything stand out in the attached illustration that I’m missing?

VUL illustration

submitted by /u/Batting1k
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