Not much to add besides what has been already stated, except that I happened to know about this and calculated over 11% IRR by year 13. Regardless of keeping plan for 10, 13, 20 years it would prob. be worth it to cash out at that point and pay tax, or roll into a new permanent ins. plan called a 1035 exchange as the loan strategy when borrowing at 8% doesn't sound that great. Besides, if a 20 year old girl has a tax bill on a $10,000 gain the tax bill may not be that high.