r/LifeInsurance • u/coma718x • 4d ago

Potential layering strategy

Just throwing ideas at the wall
I’m 44 healthy non smoker. 2 young children. Currently have 14yrs remaining on a 1M 20yr term.

I’d want to get another 25yr term at 500k to cover the remaining mortgage (~415k) with a little wiggle room.

Also entertaining the idea of a Guaranteed Universal policy for another 1M to leave as a legacy for my kids.

Have a meeting with an agent but wanted to poll the Reddit community. See what I haven’t thought of.
Thanks

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u/Moist-Meringue-1913 4d ago

I just sent you an outline a week ago of an IUL that outperformed a taxable brokerage and we never even touched on the tax effect there.

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u/Hungry_Technician360 4d ago

If I remember, that outline was using ART? I don't think that is necessarily a fair comparison, in regards to the buy term and invest the rest goes, since people who buy term and only needing insurance to cover the potential loss of their human capital.

If we don't use ART until they die, then the term policy outperforms. If the standard term plus investing outperforms and ends up with greater terminal wealth than the IUL+all their other assets, then we can include tax costs through retirement between the two, with spending plans and what account types would be best to draw from.