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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75683  
Subject: Re: To invest in VUL or not? Date: 9/25/2000 2:14 AM
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TTRoberts:

JAFO, you quoted:

<< In addition, post 1309 from dharmadollars:

"The rule is that the policy must remain in effect until your death in order for policy loans to excape classification as income. Also, remember that all withdrawals up to the amount of your aggregate premium payments constitue return of basis and are not even potentially a taxable event. It is only when you begin to take policy loans that potential tax impliciations arise." >>

"This is actually incorrect. . . . . the last sentence, anyway. ;-)"

How so? I will correct my saved response.


<< IIRC, the insurance pros on the Insurance board do not think that highly of NWM VUL because its underlying chassis is a whole life policy (NWM's strength). Also, check out the huge fees - 8% for sales cost and taxes, IIRC. >>

"It's not so much because it's underlying chassis is based on a whole life design . . . it's primarily because this particular chassis doesn't also have provisions for variable premium payments nor withdrawals. Some companies do have a “whole life chassis” yet they work very much like a VUL and so . . . may even then be considered preferable over a VUL depending on the issues of one's interests.


. . . . otherwise, GOOD post. ;-)"


Thanks. I inquired about NWM variable whole life on the insurance board relatively recently, as you may recall --- and shortened the no variable payments and
no withdrawals to the whole life chassis, but if that is not entirely accurate, is there a better shorthand description? And based on my very recent discussions with NWM agent, I doubt that a VUL policy has been made available in the last 4 weeks.

Regards, JAFO
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