[tobster1911]

I was looking at this exact same thing last year. I am 28 as well and I decided that the VUL is NOT worth it. The price difference for the universal life vs. term life was a LOT. So they say, well you have a fixed rate and you are gaining monetary value and that is why it is better. Last they say it is completely non-taxed.

You can get a 20yr term policy with a good rate and that would take you until you are almost 50. This means (potentially) that your kids are grown and out of the house. Only your wife is left. Unless you want to use this as a means to leave an inheritance (not the best way) it does not make sense to have a large life insurance policy.

As for gaining monetary value as a savings vehicle, just remember that the first ~5yrs go to commissions and the insurance co. I have all the numbers for the plan I was looking at and it would take 10yrs for it to really start some serious growth. This is because the principal in the account does not have enough mass (due to the majority of the premium not going to cash value) until 10yrs from the start. You can do just as good or better by taking that $diff UAL vs. TL and putting this completely into a ROTH or even a mutual.

ROTH investments use AFTER tax money so they too can be withdrawn tax-free after retirement.