I admit it to all. I am a VUL chump. I took out individual policies on DW & Myself 23 years ago.
I also took out a J&S policy on DW & myself when our investable income outreached my SEP, Roths and HSA.
The J&S VUL has actually performed well. We took it out in 2002 and funded it with $120,000 in premiums over 10 years. It now has a cash value of $352,500. The sub accounts have done all right.
We are now in our upper 50's and no longer desire the death benefit or want to pay for it. I'd like out but don't know how. If we cash it in we're looking at ordinary income tax at $252,500. I wouldn't mind leaving it in place and leaving it as "legacy money" in our estate, but I don't want to pay the huge mortality costs that would eat up the cash value if either of us live to be 90. We don't need the money to fund our living expense, I just don't want to see the mortality expense eat up everything if we live a long time.
What would you do if you were us
? Thanks everyone.