FoolStreet wrote: ↑Tue Sep 15, 2020 1:46 am Lots of 37%ers on Bogleheads. No one recommends VUL. Saying there are benefits seems to be more of a theoretical math problem that you work on for fun, but don’t actually want to implement. .
Honestly, if there really is a reason to buy one, you nor anyone else is explaining why.
LFKB, if you want additional useful quantitative or qualitative input from the folks on this Board on the purchase you plan to make, you should do two things.
---- Confirm that the link to the NWML prospectus cited above is the correct one, or post the correct link if it's not.
---- Post a redacted view of your illustration.
If you choose to not provide additional information, that's just fine. However, I'd encourage you to look critically at the illustration.
---- Do a calculation of the "hard dollar" costs that you are paying in fees, especially in the early years of the policy. Those dollars are forever lost to you, no matter what the tax code or your personal tax situation turn out to be.
---- Look at how much you're "in the hole" after the first policy year or two. Your surrender value in year 1 or 2 will be much less than your cumulative premiums paid.
---- Look at how many years it will take the policy to "break even"; that is, how long until the surrender value is greater than the cumulative premiums paid. Is it a decade, or more?
---- Look at how many years it will take for the policy's performance to surpass what would have happened if you had bought a term policy and invested the difference in the S&P 500 in a taxable account. Is it 15 years? 20 years? 25 years?
---- Consider the trade-off between the hard dollar costs that you're certain to pay if you buy the policy, versus the unknowable tax benefits that you will harvest in 2040, 2050, 2060, or 2070.
It sounds like you've decided this policy is the right thing for you to purchase. Nothing that has been posted on this thread seems to have swayed your opinion. Maybe an objective look at the hard dollar costs and break-even dates will move you; maybe it won't.
Whatever you decide to do, I wish you the best.