For the Finance folks, what's your take on Variable Universal Life 6? My father put a small amount of money in a policy for my daughter and I will be taking over the yearly premiums moving forward. I need to make an appointment with his financial advisor to review it in more detail but I'm curious if others have experience with one and/or any feedback.
Seems like the pluses are the death insurance component as well as the tax-free withdrawals of cash. I still need to better understand the fee structure.
It's kind of my opinion that anything other than term life for the unexpected is the only real policy worth it, and that any of the "investment" policies aren't great shakes.
Basically, other investments will offer far better returns with only slightly more risk. IRA, real estate, dividend stocks, etc.
They are worthless when they are minimum funded
If the “advisor” is pushing you to do anything less than the maximum contribution - that should be telling of his quality of advice and intentions.
Good luck.
They are worthless when they are minimum funded
If the “advisor” is pushing you to do anything less than the maximum contribution - that should be telling of his quality of advice and intentions.
Good luck.
I believe it started with $5k and the yearly contribution is $500. Doesn't seem like much.
As for the Investment portion, you can do the same thing on your own with regular (but not mandated) contributions into the Stock Market.....over the long run the Market trends upward and the kid's got a long horizon.
Check what the Fees are on this VUL. The Advisor gets paid first, so your contribution is discounted before you make a dime.
One thing to keep in mind -- for College Tuition Aid purposes money in the child's name is counted 100% towards tuition and offsets Aid. There are ways to avoid that hit.
I've seen policies with max fees inside - horrible.
It's been some years, but there used to be some policies available with extremely low fees - basically a term policy with a low-fee mutual fund attached.
If you can find one of those, the tax advantages are great and you should buy and max fund it if you can.
If you can't find one, the tax advantages will be lost due to the fees in most cases.
It's kind of my opinion that anything other than term life for the unexpected is the only real policy worth it, and that any of the "investment" policies aren't great shakes.
Basically, other investments will offer far better returns with only slightly more risk. IRA, real estate, dividend stocks, etc.
+1
How much is the death benefit?
Is it a level or increasing benefit?
Have you gotten an inforce illustration?...Get one.
What is her underwriting class....most likely she was classified as a smoker, that is how most companies handle a minor.
Small premium.....these policies are designed to work efficiently when the premium is paid to maximum allowable level.
If you are not prepared or want to do this, your long term performance will not be desireable.
You would be better off cancelling and putting the money elsewhere.
How much is the death benefit?
Is it a level or increasing benefit?
Have you gotten an inforce illustration?...Get one.
What is her underwriting class....most likely she was classified as a smoker, that is how most companies handle a minor.
Small premium.....these policies are designed to work efficiently when the premium is paid to maximum allowable level.
If you are not prepared or want to do this, your long term performance will not be desireable.
You would be better off cancelling and putting the money elsewhere.
Here's what I've got as of now.
Death Benefit - $250,000, not sure if it increases but doesn't look like it
Non-tobacco
Don't know what the maximum premium is, just that its set $500 yearly
Won't know the rest until I meet with the guy.