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Subject:  Re: VUL-Giant Roth Date:  4/2/1999  7:53 PM
Author:  maryatl Number:  9639 of 87978

Roos says "I met with a planner this week here in Atlanta to discuss VUL".

Roos, I personally think that Variable Universal Life can be a good tool. It is cash value life insurance but the money is invested in your choice of the mutual funds offered by the company. It is a way to invest in mutual funds without having to consider the gain on your taxes every year. Also, you can borrow the money out at a low interest rate, just as in the old traditional life insurance policies. However, you need to be young enough that the true cost of the life insurance won't be too expensive compared to term. I have a VUL which I took out about nine years ago and the monthly "cost of insurance" is about equal to what I would pay for term insurance.

It is like a Roth in that you pay for it with after tax dollars, but differs from a Roth in that you are not limited to $2,000 year. It also gives your family the life insurance benefit if needed. If you can, why not do both the Roth and the VUL?

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