Nothing I'm saying should be construed as advice - I do not know the client or the entire situation surrounding the client.
Personal opinion:
I don't understand why anyone would have the entire cash value of a VUL in the Money Market subaccount regardless of age. It totally defeats the purpose of a VUL - trying to get market like returns on the CV. Even for a ultra conservative older client the CV should be invested some type of risk adjusted stock and bond portfolio. Right now, the client is eroding the CV by parking it in a MM account earning 2-4%.
As far as the loan goes, one can always withdrawal CV to basis without any tax consequence, so they could theoretically withdrawal 38K in CV and use it to pay off the loan. I don't know why one would, but it certainly is an option.
If you are in CA and want to talk about it shoot me a PM with your # and I'll give you a call next week - just an unbaised sounding board - no solicition crap from me.
Good luck!
Personal opinion:
I don't understand why anyone would have the entire cash value of a VUL in the Money Market subaccount regardless of age. It totally defeats the purpose of a VUL - trying to get market like returns on the CV. Even for a ultra conservative older client the CV should be invested some type of risk adjusted stock and bond portfolio. Right now, the client is eroding the CV by parking it in a MM account earning 2-4%.
As far as the loan goes, one can always withdrawal CV to basis without any tax consequence, so they could theoretically withdrawal 38K in CV and use it to pay off the loan. I don't know why one would, but it certainly is an option.
If you are in CA and want to talk about it shoot me a PM with your # and I'll give you a call next week - just an unbaised sounding board - no solicition crap from me.
Good luck!