No. of Recommendations: 0
5. Sounds toooo good. What am I missing here?? There has to be a catch here..High fees? Risk?

I'm not an expert... but I've spent some time looking at the product for myself.

Things you've missed:

1. High fees which might be associated with that VUL. The insurance fee is not the only thing that comes out. There is a premium which is paid to the state, administrative charges, and loads on the funds. (I could be mistaken... there might be more or less than I mentioned).

2. You assumed that all or your 10% annual gain was taxable. This may not be the case... it is only taxable if in the form of taxable gain. What if your fund rarely sells - so most of their gains are in appreciation of their holdings - which aren't subject to tax?

Just a couple of thoughts...

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