NFT: GVUL vs Term Life Insurance

My company provides 1x salary, but I can buy it up to 5x salary and i do.

However, any work provided or subsidized life insurance I consider to be "gravy" and I also keep a term life policy.

when my oldest kids were born I opened one for 20 year term and when they turned 15 I opened a new 20 year term and kept the other, so there is a 5-year overlap where my wife would make out really well if I died.

I just want to leave my wife with enough to pay off the house which will probably be paid off before i die god willing, kids college, weddings, etc. and live comfortably with her new husband (ok that last part is a joke, I'll come back from beyond the grave and torture any man who tries to even look at my widowed wife).

Obviously (or not) the younger you are and the better health you're in the better life insurance rates.

I don't know the benefits of GVUL vs term, but that's what I did.

Also, honestly assess your ability to invest on your own (or with an investment advisor, fees again) what would go into the plan.

I'm prejudiced against insurance/investment products vs. group term life but you should do some homework to make your determination with this specific plan.

Don’t consider it unless you want “permenant” coverage instead of temporary. Secondly, don’t consider unless you can fully fund it or close to fully fund it. Lastly, don’t do it unless you’ve maxed out 401k and other retirement accounts ie Roth and have surplus money to save for the long term.

If all the above work for you, then yes consider VUL. But never ever minimum fund it.

I have been in this business for close to 30 years.
Max funding a Vl is a good strategy.
Dont wrap all your savings in Qualified money.
Look up Ed Slott his life insurance info is excellent.
Having non qualified money available to you will be a benefit.
If you are healthy then why not get underwritten, an individual life policy will have better costs of insurance than a group policy.
How long is the death benefit guaranteed for?
At what rate is your illustration run?
You are aware that what you are being shown will never happen?
You are being shown a linear rate of return...that is just not reality.
Not trying to sway you one way or the other.
What happens to the DB if you take a distribution?
Will the guarantee stay in force?
Can you add an LTC rider?
Dont be in a rush, you can always buy a sizeable term policy and convert it at a later date.
There are so many more questions to ask.
My practice is based on providing permanent coverage but it is not for everybody.

If you make too much and want to lower your tax braket then as a strategy it makes sense. Also gives you market participation. If you have term already and group coverage through your company, make sure you’re not buying too much insurance.

Hard conversation to have on a message board, but who told you about this?

For me term life was the better way to go. Term cost less and I could take the difference and add that with other long term investments which should bring in a higher return than if invested in life insurance. If you properly plan at an early enough age then beyond a certain point in life the need for the term life insurance is then exhausted and you can drop it all together and having only paid minimally for life insurance during the years you need it. You also end up with more control over the assets from the money invested all those years.

Of course everyone is different and you have to decide what is best for your situation.

In comment 13655450 TurdFurguson said:

Quote:

If you make too much and want to lower your tax braket then as a strategy it makes sense. Also gives you market participation. If you have term already and group coverage through your company, make sure you’re not buying too much insurance. Hard conversation to have on a message board, but who told you about this?

Offered via Metlife from my company.

For my clients, life insurance is used to fund: 1.Child care 2. Mortgage 3. Income replacement for spouse. If all three are covered by existing then you’re good on life insurance. It should NOT be used to make your family rich if you die.

All money put into a VUL comes from after-tax dollars so it’s esentially used as a ROTH account for those who dont have a ROTH 401k offered or make too much money to fund an individual ROTH. If that sound like you then do some shopping.

Talk to a financial planner, preferably someone who doesnt charge for a plan. Banks usually have them, although make sure to do your research. Someone offers you an annuity off the bat run away.

Coverage is pretty inexpensive. You normally want to keep your investment separate from your insurance.

I know Dave Ramsey (has a very popular and entertaining podcast) hates whole or universal life. Maybe google what his take is.

If you are truly interested in permanent insurance, explore options with an advisor. There are so many moving parts with permanent insurance, you don't want to be limited to only option (i.e. the group option at work).

Also, evaluate Whole Life in addition to VUL. WL is non-correlated to the stock market, whereas VUL is correlated. Market goes wrong way and both your investments and insurance suffer.

I prefer fee-only advisors that receive absolutely no compensation from investment or insurance companies. I'm sure this will piss off a bunch of advisors and agents on this site.

Assuming you can find one that takes smaller accounts. Most fee-only guys are RIAs working with high-net or ultra-high-net worth. Fee-only is essentially % of assets as their fee.

Keep in mind, they’re sales people to. So while the idea is nice, they have no incentive to offer full financial planning free. Most charge for financial planning because they can’t charge on anything but assets. So either you pay for planning or give them your assets and get the plan for free.

I would be happy to answer any questions you may have. It is a complicated process, one in which you should be fully aware of all of your options.

JJBJR922@AOL.COM- Please put BBI in the subject line.

Good luck.

I work on commission.
If you don't like the value I provide, you go elsewhere.
I work exclusively on personal introductions.
If you go the permanent insurance route, make sure your advisor integrates your retirement strategies with your policy.
That is why the guarantees are important.
FWIW Dave Ramsey's is excellent if you are making 50k and have 20k in debt.
The man is not a licensed professional.
Check out different types of insurance. whole life, ul eiul.

vul.
See which one fits you best.
I would meet with a qualified agent whether fee or commission or fee based.
Not knowing much about you, I would explore buying term and disability before buying permanent insurance.

some co-workers pooh-poohed it, but seems to me to have good benefits, e.g., most basic is that it's a great retirement vehicle if you don't die, and of course great life insurance if you do. plus other benefits, e.g., home health care, etc. probably just need to get into it at a good level where the payments are low.

In comment 13655870 TurdFurguson said:

Quote:

Assuming you can find one that takes smaller accounts. Most fee-only guys are RIAs working with high-net or ultra-high-net worth. Fee-only is essentially % of assets as their fee. Keep in mind, they’re sales people to. So while the idea is nice, they have no incentive to offer full financial planning free. Most charge for financial planning because they can’t charge on anything but assets. So either you pay for planning or give them your assets and get the plan for free.

Fee-only is a very confusing term for the consumer. As you mention, some fee-only advisors take a percentage of assets under management. Others follow what I would call the attorney model where they get paid for their time or deliverable, but they don't receive any money from financial institutions. I am referring to the latter.

I have an LTD plan through my company. We're pretty well taken care of. Just need to make a damn decision about the insurance.