I been depositing $500 a month for 6 months already and so I should have $3000 in there but when I log in to my account it’s only about $2600. My question is this normal for VUL? Do they take a fee out of my monthly $500 everytime?
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Yes. Go back and read your contract.
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Along with paying fees, a VUL can experience market gains and losses. This means your account value may not perfectly match what you contributed.
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There is a cost for mortality (insurance), then fees for the company and then finally investment management fees
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Which is why it’s almost always better to just insure mortality directly in an appropriate risk pool, and that would be term life.
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I’m sorry for your loss. Term and index next time.
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Haha, this is completely normal for policies in their first few years. Good policies typically break even around year 10.
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Yes they take a fee my dude. Looks like around a 13% admin fee
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Thanks guys, so what do you guys think of VUL? it’s any good? What’s the pro and cons?
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You won’t see a dollar-for-dollar return for several years, if ever, with a VUL. Your $500 goes toward both life insurance and the investment fund.
Since you’re only 6 months in, I’d consider a 1035 exchange into whole life.
Read every line and disclosure of your VUL. Then do the same for a whole life policy. This will help you decide which option is better for you and the insurance company. The answer will become clear when you compare the contracts.