Usually I can pick up finance stuff rather easily but this GVUL stuff seems overly complex. Combined with the bad rep of whole life insurance schemes I'm likely going to pass

 

I'm inclined to as well..but the more I look into this, I'm more intrigued. I would never buy this type of life insurance myself, but because it's paid for by Delta it might actually be beneficial (even just for the imputed income differences) with no risk of losing out on returns elsewhere.
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Yeah I'm skeptical, but in the end if the death benefit is the same either way, and the GVUL has a lower tax burden, then that just seems like the best way to go. Even if all the other parts of it are crap it won't really affect anything.

 

The way this is being rolled out, one might suspect we’re being set up for the sales tactic of hitting positives and leaving the not so great in the fine print only to be discovered after. There is no reason that all the literature being offered to us until now doesnt include investment options and associated fees from using that side of the plan. I’m inclined to use the Gvul option for the insurance side, but am not getting the warm fuzzies necessary to seal the deal.

 

I registered for one of the GVUL webcasts. I hope it easily answers all my questions

 

"seal the deal?" really? Either get GVUL or don't. I can assure you no one cares.

 

Rude. I for one am curious about others' analysis and opinion on this new plan.

 

Is there cash benefit you can take with you when you retire? That's the only reason I'd do it, more money for me when Delta is done paying for it.

 

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).

 

Option A: Status quo death benefit, high imputed income

Option B: Status quo death benefit, low imputed income, other ancillary benefits that are completely optional and voluntary


APC: “Sounds like a screw job! They obviously aren’t telling us everything! I bet the mean lady in Raleigh was behind this!”


Seriously, based on everything that’s been communicated and a general understanding of the two options, I can’t understand any rationale for continuing to pay excessive imputed income. We have the option to pivot to a much cheaper plan, with exactly the same death benefit. End of story. But please, stick it to the mean lady if that floats your boat.