Using dividends to maintain WL policy with NYL

Hi all. I purchased a WL policy with NYL in the past year and have been hearing about what a scam it is. I feel like I discovered a very specific use case that makes it worth it and want to hear if I’m missing anything.

Background:

I make mid-6 figures a year, but my industry has been very volatile in the past few years meaning that job security is not super certain.

Recently purchased 1 rental property that brings in 2k/month.

Max out 401Ks and aggressively put money into the market (~4-5k/month)

About $30k in cash

27, relatively good health

Costly life milestones likely in the next 5-8 years: engagement, marriage, kids, etc.

The policy is for 2.6m in coverage for a premium of $2000/month. It’s a lot, and it’s something I do not want to be tethered to for the rest of my life, especially given the volatility of the job market. I have lots of market exposure and do not want to be forced to sell just to cover my policy premiums.

My NYL policy begins paying out yearly dividends around year 3 of the policy. Dividends begin at $26k/year but grow as I continue to pay the premiums. The cash value grows at around 4-5% after 30 years and the death benefit starts to grow quite aggressively later in life. I am aware that the $2k/month is much better spent in the market, so I do not see my policy as something to put money in long-term.

My strategy is the weather the $2k/month storm for 3 years, resulting in $72000 of total contributions. When NYL starts paying dividends, I start taking the $26000 dividend option in cash (tax-free) and use it to pay off the premium. This would mean that for the rest of my life, I’d no longer pay NYL with any of my own money, pocket an extra $2k/year off the top tax-free, and have a $2.6m policy that does not lapse for the rest of my life.

To contrast this with term insurance, I might pay $200/month for $2.6m in coverage for a 30-year term. which is the same as the $72000, just concentrated into 3 years vs. 30. Except with WL, the policy does not lapse.

Seems too good to be true – my agent told me that the difficult part of executing this strategy is paying $2k/month for 3 years, but it’s a lot better than paying $2k/month for the rest of my life. Is there something I’m missing here?