can u explain us What you want from this post survey ? It is not clear for me. _________________ I am and always will be a sinner. But that's the beautiful thing about Jesus. I'll always try to be a better person in the eyes of God. But I'm not all of a sudden stepping up on a pedestal and saying I'm holier than thou, 'cause I'm not!
Im with cyrus, I really dont get it. What kind of policy did you buy? From what company? What is the coverage? the only thing I can really think of to say is Congratulations... and then again, congratulations may not be in order. It depends on what your current situation is, and what the policy covers.
Posted: Sun Jun 03, 2007 3:02 pm Post subject: Variable UL
It can be a good policy but my advice is to overpay your "target" premium for the first 10-20 years, if not for the life of the policy.
Inside the VUL it is a term policy and the cost of insurance increases as you age. If your mutual funds stagger or simply stink, it can and will affect the health of the policy in your later years, meaning in could possibly lapse or you could be required to pay more (or alot more) in premiums.
What death benefit did you choose? At death, will your beneficiary receive 1) the DB only or 2) DB + accumulated cash.
Overfund the VUL your first 10-20 years to offset the potential downside of losing funds, particulary if you have option # 2 death benefit. That is my advice. I've sold VUL for over 12 years.
Gary has some good points. However, there are a couple of things to be aware of related to overfunding a universal life insurance policy (commonly called Flexible Premium Variable Life).
1. Do not go crazy with the overfunding. The IRS has specific rules that "test" the policy to make sure it still conforms with life insurance rules and guidelines. These tests are the "cash value accumulation test" and the "guideline premium and cash value corridor test." They can cause severe tax consequences if both tests are failed.
These tests are intended to assure that the policy was bought for life insurance purposes and not as a tax-advantaged investment vehicle. Please let me know if you have any specific questions, and I would be happy to answer them! Hope this helps!
