The money is yours in the CV. You do not borrow the money out of the CV. If you did it would have the same effect on the contract was a cash withdrawal from an UL. You borrow the company's money while yours remains in the contract and continues to build but does stand as collateral for the loan.I do remember that chart and after looking at it again it has made me realize whole life is a TERRIBLE insurance plan your younger people.
1. You start out paying 3 or 4 times the cost of term.
2. As the years go by the net risk amount of risk to the insurance company is going down but your still paying a higher premium.
3. If you die you only get the death benefit ,whereas with a 30 term and a Roth both the death benefit and the IRA tax free.
4. The money is not yours in a whole life you need to borrow it whereas a Roth it's yours and no need to pay intrest.
5. The 3 or 4 percent a whole life may make over a 30 period is overstated because once you withdraw that money you will be paying interest on it every year. OUCH!! A Roth is tax free and intrest free.
6. If you still need insurance after 30 buy a little policy because really that's all you would have if you started out with whole life because of the net amount of risk.
As I stated before I'm not a termite and sell a lot of permanent life insurance but mainly for wealth transfer.
It is the same as if you take a second mortgage on you're house. The equity (money) in the house is still yours.
As for interest, there is interest on most loans but many insurance companies have 0 Wash loans. If you could take a loan against the value of your Roth, the assets in the Roth would still be yours and still be subject to grow but the lender would charge interest. If, instead of the loan, you withdrew the assets, then those assists would no longer contribute to the growth.