Is an Equity Index Universal Life Insurance Policy a good investment?

TheDude — Fri, 13 Jul 2007 20:27:55 -0800

Is Equity Index Universal Life Insurance a worthwhile investment? I'm considering opening up a policy with WRL and I'm wondering where the negatives in a policy like this lie? I'm located in northern California if that matters any, and have started to contribute to my employers 401K already. I'm also in my mid 20s. My agent keeps touting this EIUL policy from Western Reserve Life but it sounds too good to be true.
His claim is that with $250/month (for 30 years) I can have a kick-ass life insurance policy and a nice retirement nest egg. If it grows at the maximum of 12% in 30 years I have something like $890,000 in a retirement plan and a $1.2mil life insurance policy. I've been told to expect closer to 8% (which still turns out to be a good amount) and anything extra being a "bonus".
At anytime I'm supposed to be able to cash out up to 90% of the money in the retirement plan, tax-free.

Somehow this seems to good to be true.

I also know that there is a small physical exam where someone will come to my home, take my height, weight, blood pressure, blood sample and urine sample. Can anyone confirm if they will do a drug test for marijuana and what that might mean for me if I have a medicinal recommendation from my doctor?

Thanks!

Ask MetaFilter questions tagged with equityindexuniversallifelifeinsuranceretirement

Is an Equity Index Universal Life Insurance Policy a good investment?