Real price of WL insurance?

Carol · 06-10-2008, 01:41 PM

Originally Posted by padthaiforlunch

Is he your new agent?

No, he isn't. It's just that he was one of the first who answered my post and explained in great details why exactly I should not buy perm.

BTW, I had my medical test a couple of weeks ago, requested by my previous agent who became "previous" because he pushed WL too much. Now my new agent calls and says he cannot use my medical test, because medical company just doesn't give it to him. It cannot be shared, like it's the biggest secret since Stonehenge. So I have to take a new one, for my new agent. Interesting... So many rules, so many little things... It occured to me that while deciding on my insurance type, I've read myself and found from you here, on this forum, so many things about insurance... I could start selling insurances myself

Delta76 · 06-10-2008, 06:16 PM

In my opinion, VUL is simply a costly method of buy term and invest the difference. Here's why:

1. High investment expenses: Besides the front end loads, the expenses in the subaccounts (more or less mutual fund options) are high.

2. High priced life insurance: The price you pay in most policies is substantially more than what you could find by shopping for competitive coverage.

3. Double whammy when the market drops: Not only does your account loose value, but there is also withdrawls coming out of the funds. If you have a 50% lost, it takes a 100% return to get back to even. This is the same reason it's devistating for a market downturn to occur early in the retirement income phase than later on. No one knows what the market will do in the short run, but I personally don't think it'll be in your favor.

I see very few places where a VUL policy would make sense. And as Bluemarlin stated, make sure your other needs are taken care of first. If the person selling the VUL is from Amerprise, think hard about this decision.

NewHealthStrategies · 06-10-2008, 06:27 PM

Originally Posted by Carol

NewHealthStrategies is suspiciously quiet...

I'm glad you're finally covered..... I gave my malpracticed input at the very beginning of this post... and all the hyperbole and exhaustion since hasn't changed a word of that advice.

The bottom-line is that you have life insurance on your life that will take care of your kids and met your goals, based on what you're trying to accomplish.

There are many ways to find the final destination... some are better ways than others.... more efficient and more effective... but I'm very glad that your life is insured... you can rest more comfortably knowing that.

LGilmore · 06-10-2008, 06:56 PM

Hey, NHS, no disagreement from me. A proper and excellent answer. There are many ways to get there, none of them perfect. She found what works for her as every person should.