If Life Insurance was free, how much would you want? In the example above the grandparents paid a preimum of $100,000 over ten years. By her 85th birthday, the granddaughter took out $1,540,000 in policy loans without paying back a dime and there was still $1,063,958 left available in her Cash Value account at age 85. At this point, even if she never paid back the loans, she would leave approximately $2,409,787 to her beneficiaries after her passing, Tax-Free!
* Values will vary depending on interest rates and the dividends received during the contract period.