TA: GVUL
01-28-2023 | 12:40 PM
#11
Line Holder
Joined: Mar 2005
Posts: 413
Likes: 8
The GVUL we have at United is pretty sweet.
The cost of insurance is definitely more due to it being annual renewable term. It’s priced based on your age and how much coverage you selected. As I get older I reduce the amount of insurance to keep costs in line.
I use the investment portion of the product. Several funds to choose from. I’m in the total stock market index. Relatively low ER. Every dollar you invest goes into the investment portion - no load.
Any money you withdrawal below your cost basis is tax free. Cost of insurance counts towards your basis, as well as your investments you make.
Example: I have $30,000 cash value. But because I’ve had to policy for awhile, and contributed to it, my cost basis is $40,000 (contributions plus insurance costs). I can withdrawal my whole $30,000 tax free, even if it’s up 100%.
I manage my account and always withdrawal once my costs basis and cash value get close - then do it all over again.
Whole life/variable life is a great product - it’s the main street costs that make it terrible. We don’t have those prohibitive fees for our UAL program and I’m sure you won’t either.
The cost of insurance is definitely more due to it being annual renewable term. It’s priced based on your age and how much coverage you selected. As I get older I reduce the amount of insurance to keep costs in line.
I use the investment portion of the product. Several funds to choose from. I’m in the total stock market index. Relatively low ER. Every dollar you invest goes into the investment portion - no load.
Any money you withdrawal below your cost basis is tax free. Cost of insurance counts towards your basis, as well as your investments you make.
Example: I have $30,000 cash value. But because I’ve had to policy for awhile, and contributed to it, my cost basis is $40,000 (contributions plus insurance costs). I can withdrawal my whole $30,000 tax free, even if it’s up 100%.
I manage my account and always withdrawal once my costs basis and cash value get close - then do it all over again.
Whole life/variable life is a great product - it’s the main street costs that make it terrible. We don’t have those prohibitive fees for our UAL program and I’m sure you won’t either.
10-14-2023 | 05:15 PM
#12
Line Holder
Joined: Jun 2019
Posts: 646
Likes: 13
From: Currently freeloading
I wanted to bring this thread back form the dead. We have the rates and rules now, so what are your thoughts?
I'm generally pretty up to speed on financial matters, but I've never spent the time to understand all the benefits and costs of various kinds of life insurance. From what I can see, I don't see any reason not to choose the GVUL. If you use it for nothing more than the standard life insurance scheme, it comes with (for now) lower imputed income. Then there are the extras, like cash value withdrawals and the option to take it with you when you retire. What else is there as far as benefits? Are there any negatives to this that I'm not seeing?
I'm generally pretty up to speed on financial matters, but I've never spent the time to understand all the benefits and costs of various kinds of life insurance. From what I can see, I don't see any reason not to choose the GVUL. If you use it for nothing more than the standard life insurance scheme, it comes with (for now) lower imputed income. Then there are the extras, like cash value withdrawals and the option to take it with you when you retire. What else is there as far as benefits? Are there any negatives to this that I'm not seeing?
10-14-2023 | 05:31 PM
#13
Gets Weekends Off
Joined: Jan 2014
Posts: 2,286
Likes: 18
The GVUL we have at United is pretty sweet.
The cost of insurance is definitely more due to it being annual renewable term. It’s priced based on your age and how much coverage you selected. As I get older I reduce the amount of insurance to keep costs in line.
I use the investment portion of the product. Several funds to choose from. I’m in the total stock market index. Relatively low ER. Every dollar you invest goes into the investment portion - no load.
Any money you withdrawal below your cost basis is tax free. Cost of insurance counts towards your basis, as well as your investments you make.
Example: I have $30,000 cash value. But because I’ve had to policy for awhile, and contributed to it, my cost basis is $40,000 (contributions plus insurance costs). I can withdrawal my whole $30,000 tax free, even if it’s up 100%.
I manage my account and always withdrawal once my costs basis and cash value get close - then do it all over again.
Whole life/variable life is a great product - it’s the main street costs that make it terrible. We don’t have those prohibitive fees for our UAL program and I’m sure you won’t either.
The cost of insurance is definitely more due to it being annual renewable term. It’s priced based on your age and how much coverage you selected. As I get older I reduce the amount of insurance to keep costs in line.
I use the investment portion of the product. Several funds to choose from. I’m in the total stock market index. Relatively low ER. Every dollar you invest goes into the investment portion - no load.
Any money you withdrawal below your cost basis is tax free. Cost of insurance counts towards your basis, as well as your investments you make.
Example: I have $30,000 cash value. But because I’ve had to policy for awhile, and contributed to it, my cost basis is $40,000 (contributions plus insurance costs). I can withdrawal my whole $30,000 tax free, even if it’s up 100%.
I manage my account and always withdrawal once my costs basis and cash value get close - then do it all over again.
Whole life/variable life is a great product - it’s the main street costs that make it terrible. We don’t have those prohibitive fees for our UAL program and I’m sure you won’t either.
10-14-2023 | 07:36 PM
#14
Gets Weekends Off
Joined: Jul 2010
Posts: 3,865
Likes: 115
I wanted to bring this thread back form the dead. We have the rates and rules now, so what are your thoughts?
I'm generally pretty up to speed on financial matters, but I've never spent the time to understand all the benefits and costs of various kinds of life insurance. From what I can see, I don't see any reason not to choose the GVUL. If you use it for nothing more than the standard life insurance scheme, it comes with (for now) lower imputed income. Then there are the extras, like cash value withdrawals and the option to take it with you when you retire. What else is there as far as benefits? Are there any negatives to this that I'm not seeing?
I'm generally pretty up to speed on financial matters, but I've never spent the time to understand all the benefits and costs of various kinds of life insurance. From what I can see, I don't see any reason not to choose the GVUL. If you use it for nothing more than the standard life insurance scheme, it comes with (for now) lower imputed income. Then there are the extras, like cash value withdrawals and the option to take it with you when you retire. What else is there as far as benefits? Are there any negatives to this that I'm not seeing?
When does ours start? I’m about 2 yrs to finish with my Whole life PUS and the GVUL might be the next one I’ll work with.
10-15-2023 | 04:14 AM
#15
Gets Weekends Off
Joined: Feb 2008
Posts: 20,877
Likes: 194
The biggest advantage to whole life policies or annuities are the absolutely phenomenal amounts of money they make for the selling agent and the company. Costs that you can’t even see are baked in everywhere and you need a attorney who specializes in these policies to even read the contract.
As mentioned by others if you are near retirement age you should be fully self insured as a Delta pilot. In addition if you have a PBGC benefit you have not started drawing you have an excellent free insurance product.
The company provided insurance is also not that expensive. Strangely some pilots think the imputed income number is the actual amount you pay in taxes.
As mentioned by others if you are near retirement age you should be fully self insured as a Delta pilot. In addition if you have a PBGC benefit you have not started drawing you have an excellent free insurance product.
The company provided insurance is also not that expensive. Strangely some pilots think the imputed income number is the actual amount you pay in taxes.
10-15-2023 | 05:17 AM
#16
Gets Weekends Off
Joined: Sep 2013
Posts: 6,564
Likes: 314
From: Sitting SC at the Five Towns
10-15-2023 | 05:40 AM
#18
Gets Weekends Off
Joined: Feb 2008
Posts: 20,877
Likes: 194
Your estate plus social security should provide a very nice quality of life for your heirs. You should not need any insurance. If you are over 50 add up your 401k, outside investments, house or houses, PBGC, social security ect.. Then decide just how rich you want your wife’s next husband to be!
The one thing I would advise spending money on is excellent estate planning. Time after time you will see someone build wealth and pass away. Strangely their now rich spouse meets someone else often younger and remarries. They love and thrust their new partner and have him promise to give most of the estate to your kids who should receive it. In the end your estate goes to the new spouse and passes on to his or her kids. The generational wealth you built for your family is gone!
The one thing I would advise spending money on is excellent estate planning. Time after time you will see someone build wealth and pass away. Strangely their now rich spouse meets someone else often younger and remarries. They love and thrust their new partner and have him promise to give most of the estate to your kids who should receive it. In the end your estate goes to the new spouse and passes on to his or her kids. The generational wealth you built for your family is gone!
10-15-2023 | 06:38 AM
#19
Gets Weekends Off
Joined: Sep 2013
Posts: 6,564
Likes: 314
From: Sitting SC at the Five Towns
Your estate plus social security should provide a very nice quality of life for your heirs. You should not need any insurance. If you are over 50 add up your 401k, outside investments, house or houses, PBGC, social security ect.. Then decide just how rich you want your wife’s next husband to be!
The one thing I would advise spending money on is excellent estate planning. Time after time you will see someone build wealth and pass away. Strangely their now rich spouse meets someone else often younger and remarries. They love and thrust their new partner and have him promise to give most of the estate to your kids who should receive it. In the end your estate goes to the new spouse and passes on to his or her kids. The generational wealth you built for your family is gone!
The one thing I would advise spending money on is excellent estate planning. Time after time you will see someone build wealth and pass away. Strangely their now rich spouse meets someone else often younger and remarries. They love and thrust their new partner and have him promise to give most of the estate to your kids who should receive it. In the end your estate goes to the new spouse and passes on to his or her kids. The generational wealth you built for your family is gone!
10-15-2023 | 08:54 AM
#20
Gets Weekends Off
Joined: Jul 2010
Posts: 3,865
Likes: 115
The biggest advantage to whole life policies or annuities are the absolutely phenomenal amounts of money they make for the selling agent and the company. Costs that you can’t even see are baked in everywhere and you need a attorney who specializes in these policies to even read the contract.
As mentioned by others if you are near retirement age you should be fully self insured as a Delta pilot. In addition if you have a PBGC benefit you have not started drawing you have an excellent free insurance product.
The company provided insurance is also not that expensive. Strangely some pilots think the imputed income number is the actual amount you pay in taxes.
As mentioned by others if you are near retirement age you should be fully self insured as a Delta pilot. In addition if you have a PBGC benefit you have not started drawing you have an excellent free insurance product.
The company provided insurance is also not that expensive. Strangely some pilots think the imputed income number is the actual amount you pay in taxes.
Anyone that is young enough should use it as an alternative to 401k, Social Security, etc. Mine is paying 4% guarantee growth + dividends (this year 5.75%). And I can read my contract just fine, it’s all spelled black and white, not like our PWA.
Anyone with PBGC, is already late to the game for the WLI. Anyone that’s in their 20s-low 30s, compounding alone can be very lucrative at retirement. I could probably just use dividends at retirement for extra income.
