Home Forums Hunting & Shooting Hunter's Campfire Variable Universal Life Ins

Let me prelude by saying...I know this is not a great vehicle for retirement, etc.

However, my employer uses it for what they offer in retirement. Getting a 3% match and 50% on the next 4% (5% total). I've worked for this employer now for 8 years. During this time period I've tried to suggest using another way... not going to happen. I thought perhaps I might leave for another job with different retirement options. But 8 years later I'm still here. Due to the employer match, I'm highly considering beginning a policy. Maybe I should have started sooner, maybe I'm an idiot for considering it.

Given the situation, would you begin a policy due to the employer match? I have term life insurance (30 year) and don't plan on canceling that. Just want to hear others thoughts on the matter.

No just invest on your own.

Taking advantage of employer dollars whenever you can makes sense to me and is the easy button.

This should be a math question. HR should be able to give you the average rates of return for the policy. From there, you can calculate the total return on your money.

Also ask what happens with your “investment” when you leave. Surrender costs, early termination fees, all that jazz.

Compare that with taking your money and incpvesting it in an IRA, Roth or otherwise, in say an S&P 500 index fund, which has averaged about 11% per year for decades.

If you get full value when you leave, it may behoove you to “quit” every couple of years, roll your account into an IRA and then hire back on. That would give you the match without much of a penalty. But may mess with seniority benefits, if any.

In general though, I would be surprised if doing the company thing would outperform an individual IRA account in this case.

Those life insurance plans are a gimmick and most planners warn against them.

A sharp insurance salesman got to your boss. Almost any investment will beat life insurance. Take the 100% match but do some math on the 50%. Your 50% could earn more in a Roth or elsewhere.

It *can* work well but you'd have to be very healthy and get a great return. If you have a rated policy due to bad health it would negate any good points it could earn you.

I am an agent and I still caution against those. For the people it works for, it's "ok." And it still does not beat a Roth or similar IRA based investment.

For the people it does NOT work for, it's a miserable failure.

And if you do TOO well, the IRS will want a cut when you take money out unless you handle it as a loan, in which case you have to pay it back in or the policy could run out of cash value and lapse.

It's just too much of a chess game for most people and I still believe insurance is for insuring and investments are a whole nother animal.

Ins salesman and business owner were roommates long ago is what I've heard. The 100% match is all I'm considering for sure.


Thanks for your response. To "quit" the policy with no type of surrender is a ten year time period. I did ask some of the questions but perhaps with the wrong wording or knowledge of what I was asking. His answer was, I would get my money back. Maybe that's minus whatever interest it's gathered? I'll have to press further.



The salesman's big thing was that withdrawing would be tax free, unless I took out beyond what I put in of course.

That's true but what good is it if you can't have the gain?

Totally get that. Aside from getting more info from the guy,
the only gain I truly see is the 100% match from my employer.