I’ve been doing some GVUL napkin math.

Earnings on the investment portion are currently 4% with a guarantee return of 1.5%. Using the current 4% return, 2% front load and a five year hold for a 50yo pilot, a 40,000 investment would be worth 47,700. Annual GVUL premiums over 5 years for that age are close enough to 7,700 to call it all tax free.

An investment of 40,000 in a 5 year tax free muni bond yielding 3.6 would provide the same return, so it’s barely a base hit.

The math gets interesting when you start exceeding the tax free cost basis. My initial reading indicates gains above the GVUL cost basis are subject to income tax. If you invested in an ETF using a taxable brokerage account, all gains would be subject to capital gains tax. At some point the lower tax rate on a zero fee investment overcomes the 2% front load with a portion of tax free earnings.

A better approach would be a conservative investment mix in a taxable margin account. You have better investment control and the option for a tax free loan. Gains are subject to a lower tax rate in the event of a withdrawal.