TA: GVUL
10-20-2023 | 02:52 AM
#61
Gets Weekends Off
Joined: Dec 2007
Posts: 6,198
Likes: 259
Thanks I see the chart. Looks like pretty significant tax savings as you get older
10-20-2023 | 05:33 AM
#62
Line Holder
Joined: Oct 2023
Posts: 300
Likes: 95
Fair enough. If there is truly some massive “gotcha” boogie man that wasn’t disclosed by ALPA or Delta, I’d gladly join the group DFR lawsuit.
I could be wrong on this, but I don’t think the imputed income differences have anything to do with discretion by met life in the desperate treatment of both plan offerings. I think it’s a byproduct of the tax code and how group term vs universal life policies are treated for purposes of calculating imputed income.
Everything else being equal, smart money is on the most tax efficient option.
I could be wrong on this, but I don’t think the imputed income differences have anything to do with discretion by met life in the desperate treatment of both plan offerings. I think it’s a byproduct of the tax code and how group term vs universal life policies are treated for purposes of calculating imputed income.
Everything else being equal, smart money is on the most tax efficient option.
Between the MBCBP, the GVUL and the deferred compensation plan (if that ever gets going), that's a pretty interesting assortment of options.
My wife is a few years younger than me, and I see there are new DPMP options for that situation as well that saves real money.
10-20-2023 | 07:13 AM
#63
FlySmarterNotHarder
Joined: Feb 2006
Posts: 596
Likes: 1
From: fifi flyer
Not interested in putting my own money into the GVUL after $50k investment portion. If I were younger maybe, but I'm a little over 2 years from age 65 retirement. I guess I'll switch to the new plan for those two years for reduced inputed income tax and then surrender it at age 65 (or age 67?) retirement. I'll take the free $50k life insurance Delta pays for of course but I don't really need any life insurance at all.
10-20-2023 | 07:41 AM
#64
Gets Weekends Off
Joined: Feb 2007
Posts: 102
Likes: 0
Not interested in putting my own money into the GVUL after $50k investment portion. If I were younger maybe, but I'm a little over 2 years from age 65 retirement. I guess I'll switch to the new plan for those two years for reduced inputed income tax and then surrender it at age 65 (or age 67?) retirement. I'll take the free $50k life insurance Delta pays for of course but I don't really need any life insurance at all.
10-20-2023 | 08:52 AM
#65
Line Holder
Joined: Mar 2014
Posts: 509
Likes: 21
From: 757/767
This is what I'm hung up on. I don't plan on using the investment option. So does this mean you would get the premiums Delta paid returned to you if you elect to surrender the plan at retirement? What exactly is the cash value if you aren't using the investment option?
10-20-2023 | 09:11 AM
#66
Gets Weekends Off
Joined: Dec 2013
Posts: 2,574
Likes: 75
I have never paid attention to imputed income. If I understand correctly this GVUL plan has a lower imputed income value and thus it will result more lower taxes? How is that possible? This plan has a lower value?
10-20-2023 | 09:13 AM
#67
Line Holder
Joined: Oct 2017
Posts: 1,105
Likes: 6
From: 737 A
This is what I'm hung up on. I don't plan on using the investment option. So does this mean you would get the premiums Delta paid returned to you if you elect to surrender the plan at retirement? What exactly is the cash value if you aren't using the investment option?
10-20-2023 | 09:18 AM
#68
Line Holder
Joined: Oct 2017
Posts: 1,105
Likes: 6
From: 737 A
The GVUL plan pays imputed income on the premiums delta actually pays. The term plan pays taxes based off an IRS chart. The chart says you got more value in insurance than what Delta actually paid for premiums. The difference in premiums vs the chart grows wider the older you get. The tax savings is the taxes charged on the difference between premiums and the chart. It’s probably not going to be very much for most of us, but less tax is a good thing.
10-20-2023 | 10:56 AM
#69
Thread Starter
Gets Weekends Off
Joined: Jun 2015
Posts: 2,008
Likes: 184
Point 1: Anyone know how are cash value gains above the cost basis taxed? Long term capital gains rate or ordinary income? Is that the “modified endowment contract” tax treatment? Any gouge on this situation?
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding.
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding.
10-20-2023 | 11:02 AM
#70
Line Holder
Joined: Oct 2017
Posts: 1,105
Likes: 6
From: 737 A
Point 1: Anyone know how are cash value gains above the cost basis taxed? Long term capital gains rate or ordinary income?
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding.
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding.
