No. of Recommendations: 1
VUL as it is known is one of the most oversold policies on the market. It has its place, but I would ask myself these questions before I even considered a policy:
1. Do I need life insurance or additional life insurance?
2. Am I healthy?
3. Have I maxed out my 401(k), IRA's etc?
4. Am I willing to keep the policy in-force my entire life?
5. Am I going to be making any substantial withdrawals in the future, if so, am I willing to wait 10 years or more?
6. Am I willing to invest aggressively in the equity based sub-accounts?
7. Am I willing to fund the policy well over target premium, that is maximum fund it?

If you answered yes to most or all of these questions, you may be a good candidate for this type of policy.

IMHO, Amex's VUL is mediocre compared to other polices in the marketplace. You can by a low-load VUL policy, pay no commissions, pay no surrender charges and have some of the best sub-accounts available in the market if you check with Ameritas Life Insurance Co.

Yes the money grows tax deferred and comes out tax fee in a VUL, but that goes for any type of permanent/cash value insurance. The kicker is that the policy had to stay in-force for your entire life or these withdrawals and loans become taxable at ordinary income tax rates.

Hope that helps!

Alan McKnight, CFP
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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.