What is your experience / advise regarding Universal Life Insurance Plans?

Go with Navy Mutual Aid, a military insurance association. They can provide info. I have been a member for decades and can attest to their reliability. I started with them after my father turned over to me a "vanishing premium" universal life policy from John Hancock which had lost over half it's value due to premiums never vanishing. I converted it to Navy Mutual Aid universal life which has performed exactly as promised and met or exceeded target interest rates for the last 20 years. I also have term life with them.

Not going to tell you what to do with your money, but I'll pass on an article from Forbes (it's a couple years old, but not outdated).

http://www.forbes.com/sites/investor/2012/09/13/retirement-disaster-looms-for-universal-life-policyholders/

Keep in mind, a 7702 is not a “retirement plan” as most people understand retirement plans. Rather, it’s another name for a life insurance policy, often variable universal life, and often sold with very high commissions attached for the salesman.

These plans may very well be appropriate for some individuals, but most definitely not for the majority.

Do your due diligence and you may want to consult with a certified financial adviser (who has YOUR best interest in mind).

Just my opinion, It's your money.

SSG Ortega,

As a licensed life insurance agent, I can tell you that Universal Life Insurance policies have pro's and con's like everything else. That said...I own an Indexed Universal Life insurance policy on myself and my wife with the intention of using the cash value for supplemental retirement income and this is also how I sell these policies. Different life insurance companies have different types of universal life policies so you need to be aware of how the cash account grows.

My policy has a 1% floor and a 13% cap on the internal rate of return. The current 20 year snapshot on my policies rate of return is 8.4% tax free which is pretty damn good.

You also need to be aware that some permanent life insurance policies may have Chronic Illness rider's that can be added at no up front cost which serve as a substitute for Long Term Care insurance.

Hope this helps.