re: Everybody wants to sell me insurance...

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Do you have a recommendation on how to use the dividends? Reinvest? Toward Premium? Or paid out? I understand this answer could change depending on where we are in life.

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Personally I use it to purchase additions (basically reinvest into the policy). As you said it can all change depending on where you are in life. Luckily, you can change your dividend at any time, and it will take effect at the next anniversary. These policies offer ultimate flexibility for you.

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The NW people (there were two) mentioned being able to use the capital in the fund as collateral for loans. They gave an example, but could you go into more detail as to how this works?

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Basically you would assign ownership of the policy to the bank as long as the loan is outstanding. If you pass away, the death benefit goes to the bank to satisfy whatever is left of the loan, and the rest then goes to your beneficiary of choice. Once the loan is repaid, the bank is legally required to release the assignment back to you.