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Re: Variable Universal Life



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On 07/20/98 06:45:12 you wrote:
>
 A few questions.  Anyone have experience with or knowledge of:
>
>-     the workings of "Variable Universal Life" policies so that you have 
an
>opinion about them pro or con?
>
>-    the degree to which the investment vehicles actually mirror their real
>market Mutual Fund cousins?
>
>-    whether it's possible to use historical data on closes of these
>vehicles to develop a switching strategy for them?
>
>>Steven Buss
>sbuss@xxxxxxxxxxx
Steve;

Our firm ( http:\\www.flexibleplan.com )has worked with VUL for about 10 
years and manages accounts (market timing and asset allocation) with a 
number of insurance companies.  We also maintain the only daily price 
service (with histories, as well)for VUL and variable annuity sub-accounts 
(equivalent to individual mutual funds)at http:\\www.annuityprices.com .

I have traded my own VUL since about '88.  No different from a mutual fund 
family.  The tax benefits you mention are real.  Bigest disadvantage: high 
costs and commissions. I'm not aware of a no-load VUL, although we haven't 
looked in a while.  I've asked my fund relations person to do a review - so 
maybe something will turn up.

The funds mirror their mutual fund cousins somewhat, but we find there are 
often differences.  Also while funds pay dividends, which then have to be 
factored in to compute total return on a reinvested basis, the VUL's prices 
reflect the dividends already.

In using histories, it is no different from mutual funds.  We often will use 
constituent mutual fund histories to determine initial trading parameters on 
a brand new VUL; but find that the VUL sub-account histories are better once 
established.

I used to have a sales piece we used to explain the differences between 
VUL's and Variable Annuities (which I prefer).  If you want me to dig one up 
and send it to you, let me know.

Jerry Wagner
Flexible Plan Investments, Ltd.
flexplan@xxxxxxxxxxxxx
Bloomfield Hills, MI