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Author: FoolWAM One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17946  
Subject: Re: American Express (IDS) Variable Life Date: 10/22/1999 10:06 PM
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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
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