Permanent Life as an Investment for Children – a spitball

I was talking with some agents about the IRS changes for the 529 and how advantageous it is for hesitant families that were unsure if their young one would actually go to college. It got me thinking about what plans can we implement early in a person’s life that they can use when they’re 25-30 (buying their first home, planning for a family, getting married, etc.) and it consistently kept coming back that the most advantageous “investment” was a 15 or 20 pay Whole Life policy.

The extreme tax advantages to either borrow against it as a loan or pull from the cash value as a 25-30 year old needing a pretty substantial amount of cash without having to go through a credit check is undeniable. I’m just wondering if I’m missing anything out there that has the same sort of flexibilities/guarantees that a permanent life insurance policy offers for a new human to have access to when they enter their early adult life stage.

In my opinion, mutual funds and other investments with this idea are too tax burdening. And you can’t pull from an IRA or 401k until 59.5 without penalty.

submitted by /u/Big_Toenail_Clipper
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