Date: Thu, 20 May 2004 11:38:06 CST
From: beliavsky@aol.com
Newsgroups: misc.invest.financial-plan
Subject: Re: VUL
Message-ID: <3064b51d.0405200517.620463f2@posting.google.com>
References: <9fd676b5.0405181426.47a309a6@posting.google.com>
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l3a3WONLyQqhsvwS3TkU7Rv59/dzKC9bVTGfOFB6U6tTrH+pHGLrlA==
=250x
Matt wrote in message news:...
> mark wrote:
> > My point is simply this - VUL and other niche products are just that
> > - niche products. But unfortunately I've seen too many people who
> > would never be right for these products being sold them. And 99.9% of
> > the people who are "sold" them don't need em and would be better off
> > putting their money somewhere else. End of rant.
>
> Ok, sorry, but this is exactly NOT the kind of advice I'm looking for.
> I have read the prospectus, I understand the fees and their nature. I
> know that for me, because of my situation - already exhausted all tax
> advantaged options, likely to be unable to contribute to a Roth soon,
> and high tax bracket in retirement - a VUL is an interesting
> POSSIBILITY. Comments like this and all the blind rage on amexsux just
> don't convince me. It would make one wary, but I don't need any help
> being suspicious. Besides, the people ranting always talk about how
> they got into the VUL policy when they weren't maxing Roth & 401k, or
> had credit card or other bad debt, didn't have the money to properly
> fund the policy, etc. Well, that's not me.
>
> The question is which costs me more over the years?
> A) Premium charge, COI, & fund charges
>
> OR
>
> B) Term, Income tax, capital gains tax, & fund charges
>
> (Did I leave anything out of either line?)
> With regards to future insurability, I'm not going to have a problem - I
> don't smoke, drink, am in good health. Barring accidents, I'll be good.
This is a very dangerous attitude to take towards insurance. People
who are struck with a terminal illness are not given advance notice!
I bought some universal life (not variable universal life) policies a
while ago, after discussing the issues extensively on this newsgroup.
To me, VUL was too complicated, and the current favorable tax
treatment of capital gains and dividends lessens the appeal of
stock-based subaccounts in a VUL. If Kerry is elected and capital
gains and dividend taxes go up, VUL would look relatively better. You
can at least guarantee insurability by buying a term policy
convertible to permanent NOW, and wait until the election to make a
decision.
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