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Subject:  Re: VUL-Giant Roth Date:  4/3/1999  6:57 AM
Author:  FoolWAM Number:  9646 of 88033

Roos, I posted an answer to your question yesterday but have not seen it. Let me post it again.

It sounds like you are a good candidate for a VUL. Let me outline the criteria I use for deciding whether someone qualifies. Do you need life insurance or additional life insurance; are you in good health; are you willing to overfund the policy well over target premium; are you willing to place all your premium dollars in the equity subaccounts; are you willing to wait at least 10 years to make withdrawals of cash, are you willing to keep the policy in force your entire life, and have you already maximum funded your 401(k) and IRA's? If you answered yes to all or most of these questions, you are probably a good candidate.

I would recommend that you buy the smallest policy that you can overfund and max that baby out! Have your planner run illustrations at 10%-11% gross return, not net, and use that as your guide.

Someone else recommended tax efficient funds in lieu of the VUL. That comaprison is irrelevant because taxes will never be due on VUL withdrawals and loans if done properly. If you were comparing this to a variable annuity, I would say the comparison to tax efficient funds would be very relevent. A VUL though is not the same thing as a Variable Annuity.

Alan McKnight, CFP
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