UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: dianakalt 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 17936  
Subject: Variable Universal Life??? Date: 5/23/2000 5:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hello all,
Last night, my friend and I spoke with a representative from World Marketing Alliance, which is the 4th largest broker-dealer in the country. He was talking to us about and insurance/investment product called Variable Universal Life (VUL). I had never really heard of it before, but of course this guy was plugging it as a great product. My friend is considering it as an option for insurance/investment, but we have little information on it. Unfortunately, my friend is a little less financially knowledgeable than I and a little more impressionable, so I am trying to find lots of info so I can help steer him in the right direction.
From what I gather, VUL is essentially Annual Renewable Term insurance combined with dollar cost averaging investment in mutual funds. (I am not sure what all funds one can invest in, we didn't discuss that last night). Anyway, you put after tax $$$ in, and the investment portion grows just as if you were doing dollar cost averaging mutual funds. The difference is you can withdraw the investment money after 10 years and it is Tax-Free. There is no minimum age you must be before you can withdraw investment $$$.
I am leery because I am totally unfamiliar with this product. If it is as cool as it sounds, it may be worth investigating--but of course the guy who told me about it is trying to sell it.
FWIW, this product originated in 1986. On one hand, i can't believe that I would never have heard of it (even though I am 25, no husband/kids, so not terribly concerned about Life insurance). On the other hand, it took around 15 years for 401(k)'s to really the country's attention...

ANY information--pros or cons--that you guys can provide would be appreciated!

d
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement