Source: Section 25.G.10.

I am not well-informed at all about Group Variable Universal Life Insurance.

All the Dave Ramsey/Clark Howard/Motley Fool advice I’ve ever heard is Whole Life Insurance is usually high commissions to the salesman and the return after fees on this product make it not worth it. The advice is buy term life insurance to insure your risk, and invest the difference in premiums in a taxable account and you’ll come out ahead over whole life.

And then this nugget in the TA comes out and I start doing some research. I read some opinions on Motley Fool and White Coat Investor and some other must-be-true Internet sources that are sour on VUL, but leave caveats that it might be good for a very small sliver of the population with high income, high tax rates, maxed out 401ks, paid off debt, etc.

Seeing how the company-paid life insurance policy has a steep imputed income slope approaching retirement; so much so that pilots are voluntarily foregoing the policy to not get hammered on imputed income, and this theoretical GVUL plan would be an alternative, would anyone be able to explain or offer an opinion of would this be something worth our while? And if so and age/income thresholds?

Whats the main benefit? Why would someone choose this option over others? Anyone got a friend or family member with experience on this?

We don’t have any details on our plan particulars, but thought I’d put this out to the ether to discuss.