WL to Build Cash Value or Build Dividends?

[kookaburra]

Thanks for the thoughtful replies. Sorry for not replying sooner.

I am working with an agent who is very knowledgeable. I'm here to get a second/third...perspective on this complicated topic. Through these discussions I hope to make decisions that are in my best financial interest.

I plan to retire in 5 years, ergo the 5 years of max funding while my income is higher.

What I've learned here:
-I need a crystal ball.
-Cash value is more important than accumulated dividends.
-How cash value is used is important and affects performance.
-Assumptions of market returns affect policy performance, and different policies will outperform in different markets.
-There is an Indexed Universal Life product that merits investigation for its high returns. Thanks for the explanation of the UL advantage in building cash within the limits of the Internal Revenue Code.

I believe dividends will rise again, but it may take a few years as the Fed can't unwind all the QE in a short timeframe. Therefore guaranteed returns aren't my primary focus. I dismissed ON Prestige Max, but may now reconsider using a more optimistic dividend outlook.

I assume the Death Benefit of IUL would be less than WL in the above examples based on the "mechanics" of UL.

So I now know more and can more actively participate in selecting a product
Ideally I want to outperform other safe investments, have a DB for my spouse, but also have the flexibility to access the CV and be able to spend the DB down if necessary without sacrificing performance.

 

[scagnt83]

I plan to retire in 5 years, ergo the 5 years of max funding while my income is higher.

That makes sense now.
- - - - - - - - - - - - - - - - - -

-Assumptions of market returns affect policy performance, and different policies will outperform in different markets.

-There is an Indexed Universal Life product that merits investigation for its high returns. Thanks for the explanation of the UL advantage in building cash within the limits of the Internal Revenue Code.

I assume the first statement is referring to IUL vs. WL?
If so, yes, Index linked returns will dictate the final outcome of the IUL.
And Interest Rates will affect both of them.
And Individual Company Performance will affect the WL.



I wouldnt call the IUL "high" returns. Permanent Insurance does not deliver "high" returns. It delivers moderate returns, even IUL.

What UL in general does though (or has the ability to do if set up correctly) is direct a larger % of policy gains to the CV.

And what IUL does is give you the opportunity for gains above historical WL dividends.