M********s
发帖数: 36 | 1 http://www.bogleheads.org/forum/viewtopic.php?t=3058
matthewsjl
Joined: 02 Jun 2007
Posts: 9
Posted: Sat Jun 02, 2007 11:31 pm Post subject: VUL options
OK - I know this forum is geared towards fund advice but I'd be interested
in opinions on the following.
About 9 months ago, we (wife and myself) purchased VULs through a well known
financial 'planning' organization (proposed by advisor). Something in the
last couple of days prompted me to look at the fees that we pay up front on
every premium - I was a little shocked when I discovered it was 5%. It
clearly states this in the facts/figures section of the policy but my wife
and I don't remember this being specifically mentioned - just the
projections. The advisor was a friend and we were probably a little too
trusting. That's our failing that we recognize.
So, we're about 9 months in and have paid in about 5k each per policy ($800/
month) so far (for a total of $10k). If we surrender, we lose the lot as far
as I can tell. I'm not adverse to ditching but it would sting a little bit
from the experience. The surrender charge for years 1-5 is about $8300 per
policy.
As far as I can understand, the fees we contribute yearly are about $550/
year each (total $1100) - that would make it 9 years to recover the '
experience', less with compound gains. Another contributing factor is the
funds in the VUL appear to be underperforming... which may make the recovery
period less.
Of course, if we ditch, we'll still be looking for life insurance but would
look at the options available.
I realize that this could be an expensive learning experience. I ordered the
Bogleheads book today and have taken a personal decision to not be misled
in the future and to have a more active role in my financial management.
Thanks in advance for opinions,
John. |
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