For those of us that have a long time to go before 65, we have the benefit of time on our side. I've calculated that at the current rates, the company's contribution to my cost basis will be about $40,000 (almost certain to go up during my career). If I were to dump about $30k in to the anemic guaranteed return investment (4% now, 1.5% minimum, I used 3%) and never add or remove another cent, I'd end almost even with the total cost basis at the end of my career, for $675 in fees. If the investment options end up being even slightly better, say, 5%, I would need significantly less to start with, about $13.5k.

That seems to me to be the best strategy if you want to take advantage of the investment profile. Put in as little as possible as early as possible so that you just barely hit the cost basis on retirement day.

The estate tax exemption for a single person is about $13 million this year. Hard to imagine more than a few outliers with estates that large passing away while still active here with the company provided insurance.

And if the $1.1 million was your only income, your estate saves $365k on federal income tax.

There are some states that levy an estate tax or inheritance tax below the federal threshold. DYODD, YMMV, talk to your estate planning attorney (or get one). The federal exemption is halved at the end of 2025 with the expiration of the 2017 TCJA.

I'm not sure why you are calling it 1.1 million of income. It's not income to the estate, it's an asset.

The GVUL investment earnings are subject to income taxes. This sets up a false comparison such as $40,000 cost basis times 35% income tax equals $14,000 tax savings. The real comparison should be $40,000 times 20% capital gains tax equals $8,000 tax savings. You see the alternative to investing in a GVUL policy is a taxable brokerage account that pays capital gains tax NOT income tax.

A better option would be a tax efficient ETF that doesn't charge an upfront 2.25% fee and offers better returns.

It seems that way.

I haven't had a chance to listen to the podcast yet (maybe it answers this) but on the mailer it says it is Permant*

In some program designs, if your plan sponsor replaces MetLife GVUL with another group life insurance plan or otherwise terminates the MetLife group policy, your coverage may also be terminated, even after retirement or separation from employment. Rates may increase if you leave your employer or are no longer eligible under the group and choose to continue your coverage.

OK, I'm not well versed so be kind, but if Delta decides in 5 years to dump MetLife then all the premiums paid (for the whole withdraw cash value equal to premiums paid) go poof? I assume since the GVUL is codified in the PWA they would switch to a different insurance company and continue the GVUL?

As far as the actual life insurance benefit am I correct in my understanding that functionally, the Term and GVUL are the same? I.e. you die, your spouse is paid $1,068,000? I think I'm confused by this fine print:

Earnings within your GVUL coverage grow income tax-free while the policy stays in force.

That only applies to any money you put into the investment side and not to the benefit?

I could type a long response, but go listen to the podcast. (1.5x speed if you’re pressed for time). Answers all your questions.

Ok, will do. Thanks.

Is this an Engage podcast??

DALPA->Podcast Dashboard->Episode 38
Yes.

(MetLife also hosting webinars, you have to register and download webex. It’s on their site, last i saw no streamable replays, but essentially the same info as DALPA podcast, 15% richer content and you can type questions to the MetLife guy. I registered minutes before the seminar began).

what’s the consensus? Cliff notes…