Notes from the Webinar tonight:
1) The GVUL is applicable to the Delta paid insurance (2,500 times the 12-year captain rate) not the supplemental term available from Delta.
2) If you choose GVUL the first $50,000 remains term and the rest transitions to GVUL
3) Enrollment period 1 Nov - 17 Nov
3a) Complete enrollment 27 Nov - 20 Dec
4) GVUL is permanent and portable
5) Variable range of investment options (low to high risk tolerance)
Or
6) Interest bearing account (guaranteed fund account) current minimum rate of return 4%. Will never go below 1.5%. Can only move 25% of funds out of this account into the variable funds.
7) Tax free transfers between accounts
8) Expense charges: 2.25% expense charge for additional funds added above what Delta pays
9) Tax advantages: All earnings are tax deferred. Access to cash value when needed without penalty. Tax free withdrawals up to basis.
10) All investment dollars are on an after tax basis (either lump sum or partial deposits)
11) Tax free withdrawals up to basis: Delta paid premiums + own invested inputs (additional GVUL premiums paid as investment)
Example:
Age at issue: 40
Ends at age 65
Premiums Delta pays: $39,282
Extra premiums paid for savings/investment: $125,568 (optional)
GVUL earnings: $93,235
Paid in total (basis): $164,850
Cash value subject to tax $53,953
Available cash value $218,803
12) There is a maximum amount that can be invested per year (changes year to year)
13) This is not a whole life policy
14) Taxes are more favorable on the GVUL policy
15) No rider options
16) No further underwriting required at retirement if the policy values are not increased
17) Basic imputed income is lower than with group term
18) If you don't use the investment option, nothing is returned to you if you surrender the policy upon leaving Delta. (Cash value would be returned and the amount over the Cost basis is taxed at your current income tax rate)
19) You could revert to Group Term during subsequent open enrollment seasons.
www.metlife.com/gvul/DeltaAirLines
The presenter handled a lot of Q&A. You can register for future webinars on the website.
I'm just a guy, but it seems to me that there are no drawbacks to the GVUL vis a vis the Group Term if you don't leverage the investment option--i.e., you get the same death benefit. If you're looking for another vehicle to diversify your portfolio you'll have access to investment accounts with GVUL. You could also just keep using your own money to pay into your usual investments (bitcoin, gold bars, whatever).