Date: Tue, 28 Oct 2003 06:45:42 CST
From: "BMS" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Is VUL right for me?
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A VUL would be a good thing to for your friend to sell, not for you to buy.

Since you are thinking about it, come up with a list of life events and how
you see them coming together.

Education, marriage, real estate purchase, family, business, career and
whatever else you deem important and then how you are going to save for
paying for them.

 Stick with maxing out the 401k and learn the fundamentals of personal
investing.

Good luck.
"David"  wrote in message
news:82f53a38.0310251025.66ea1a66@posting.google.com...
> Hi,
>
> I've read many of the previous posts regarding VUL's vs BTID and I was
> wondering if you guys could give me your opinion.
>
> I am 22, single, no dependents.  I have just started my first job and
> am currently maxfunding my 401k.  I do not have a Roth IRA yet and I
> have no insurance.
>
> My friend just started working a FA selling Hartford products.  He
> approached me about the VUL thinking it would be the right fit for me.
>  He chose a VUL policy because I'm helping my dad and sometimes
> sending money home for them to use.
>
> If I were to get the VUL it would be a 150000 policy and I would be
> overfunding it with 150/month but it would still be short of the MEC
> point.
>
> He's marketing the VUL as a tax free medium term investment vehicle
> because I can take loans at 0% essentially making it so that I could
> access that money tax free as long as the VUL is kept in force.
>
> He also mentioned that getting the VUL now would be more cost
> effective than having to get term later in life because the rates
> would go up marginally from now (until I die).  However, I've read
> that even though premiums do not go up much the mortality rate goes up
> and that much of the cash growth in the future will be used to pay to
> keep the VUL in force.
>
> In his illustration at an 8% growth rate he showed me that a VUL can
> outstrip normal mutual funds after 7 or 8 years while still paying for
> itself.
>
> I've read other articles and talked to friends and family and they
> think that a BTID strategy would do better than a VUL since I'm so
> young.  So bascially some people say VUL is good for young people
> while other say it's not...soo much information my head hurts >_<
>
> My inclination at this point is BTID would do better than a VUL as
> long as I start funding my Roth IRA and plan out the best point to get
> term insurance so that i can be covered during my older years.
>
> All advice and comments are welcome!
>
> Thanks,
> David
>