G
Guest
Guest
Hello,
I am in the process of selecting a life insurance policy for my children. The research I have been doing landed me here. My goal is to build up as much tax deferred CV for them as possible to give them a head start in life. As an IRA is not an option for them, I see the potential tax deferred growth of CV in a VUL as an alternative.
I read the following in Wikipedia which I do not understand, and was hoping (praying) someone here could decipher:
[edit] Criticisms of Variable Universal Life
Some general Criticisms
High Costs - VUL's tend to be more expensive than other types of insurance, including Whole Life, Term, and Universal Life (in that order). The total cost of insurance in a VUL policy will be greater over its lifetime than a term policy and therefore more profitable to the insurer (see Buy term and invest the difference).
1. What does it mean that VUL's tend to be more expensive? More COI, More M & E? I do not understand. Less of the premiums go to CV?
2. It says that VUL's are more expensive than WL. Term, UL in that order.
Does that mean UL is the cheapest? How so? Why?
Thank you very much.
I am in the process of selecting a life insurance policy for my children. The research I have been doing landed me here. My goal is to build up as much tax deferred CV for them as possible to give them a head start in life. As an IRA is not an option for them, I see the potential tax deferred growth of CV in a VUL as an alternative.
I read the following in Wikipedia which I do not understand, and was hoping (praying) someone here could decipher:
[edit] Criticisms of Variable Universal Life
Some general Criticisms
High Costs - VUL's tend to be more expensive than other types of insurance, including Whole Life, Term, and Universal Life (in that order). The total cost of insurance in a VUL policy will be greater over its lifetime than a term policy and therefore more profitable to the insurer (see Buy term and invest the difference).
1. What does it mean that VUL's tend to be more expensive? More COI, More M & E? I do not understand. Less of the premiums go to CV?
2. It says that VUL's are more expensive than WL. Term, UL in that order.
Does that mean UL is the cheapest? How so? Why?
Thank you very much.