Interesting post (#847) over on the Life Insurance Board regarding the statement "withdrawals from a VUL policy are tax-free." For convenience, it appears below.<<snip>>Dear JAFO: You are a great FOOL, loans are tax free (not interest free). You may take cash surrenders, which are tax-free up to the cost basis point. Once you exceed the cost basis however; you owe the IRS for what you get. As a result, you are NOT missing something. Now please allow me two asides... 1. Please consider getting that agent to put his statement in writing on his business letterhead. Then make two copies; send one to the State Insurance Commissioner (in Austin), and the other to the State Securities Commissioner (also Austin). Since VUL is bundled with investments, The State Securities Board has some oversight. 2. I have enjoyed Patty's and Mark's messages. I believe that they focus their practice on client needs (as do I). Let me address term vs cash value from my own perspective (and hope they both agree with me). There is no real battle. By that I mean there is no way a person can say that one is always better than the other in all cases on earth. It really depends on the nature of the NEED (INSURANCE SHOULD BE NEED BASED) a consumer is trying to protect.Anyhow, I invite you to share that rogue's statement with my friends in Austin. Carpe diem!! --Wauseon--<<snip>>
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