Scott Cahill of Fulcrum Partners, LLC

Variable Universal Life Insurance

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Variable Universal Life Insurance: Weighing the Pros and Cons

In an August 28, 2015 article, Ed McCarthy, CFP, RICP challenged perceptions about variable universal life insurance, (VUL) pointing out the pros, the cons, and a few misunderstood aspects of this niche insurance product. As McCarthy pointed out, “VUL also generates strong reactions: some advisors swear by it while others swear at it.”

Scott Cahill of Fulcrum Partners, LLCScott Cahill, a founder and managing director of Fulcrum Partners LLC, was interviewed for the article. He offered his insights on VUL, including explaining the unique circumstances when this product can be a good choice, even for consumers in their sixties.

Scott offered this rule of thumb suggestion for those considering the purchase of variable universal life insurance:

“What I look at is, is my after-tax cash surrender value higher in the life insurance policy at the end of seven years or is it going to be higher if that (premium) goes directly into the mutual funds assuming, a blended tax rate on the funds of 30 percent?” asks Cahill. “If it’s going to be higher in the cash surrender value on a projected basis, then of course [I buy the VUL policy] because I’m saving on taxes.” 

To read the full content of this article, you can view it online at LifeHealthPro or you can download it as a PDF on the Fulcrum Partners Resource page (Download PDF: Variable Universal Life Insurance: an Interview with Scott Cahill of Fulcrum Partners)