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In Reply to: Re: Re: Re: Re: whole life posted by John on August 14, 2001 at 21:57:14:
John --
I hope you're not in the whole life business, as what you're saying is incorrect!
: excuse me for interrupting this lovefest -- with respect to WL -- you can withdraw to basis as well.
No you cannot. Whole life cash value is an asset of the company. They own it, technically. The only way to get the money is through a loan. With a UL, the company is the holder of YOUR money just like a bank is the holder of your savings or checking account money. You can always withdraw YOUR money (and to basis with UL...above basis is a taxable event, which is why you want to borrow above basis, and also why the loan rate is extremely important.
AND the biggest advantage WL has over UL -- IT'S GUARANTEED -- WHEN THE DIVIDEND PAYS -- NOTHING NOT GOD HIMSELF CAN TAKE IT AWAY -- not so with UL -- CV is ALWAYS at risk.
Sorry, John, this is also not true. Cash value is part of the general assets of the company either way -- WL or UL. Neither is safer than the other...but with UL you have more liquidity. Whatever has already been earned, has been earned, and cannot be taken away. In the future, you may never get another dime of excess interest, but you could never get another dividend either. Same! SAFETY is CONTROL...more than the SIZE of the carrier! hindi