Re: Variable Life Insurance with guaranteed min 2% return
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and says he will be withdrawing $140,000 per year when he retires at age 65. He says this money will be tax free; and that he will draw 140k FOR LIFE.
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Hmm... just reread your post. Usually if money is guranteed for life the product is an annuity. Both annuities and insurance policies are sold by insurance companies. Could this be a variable annuity?
With an annuity you'll pay a lump sum and the insurance company will guarantee you a specific periodic payment for life. There is usually a death benefit -the remaining balance that you paid in. With an annuity you probably cost yourself some $$ with higher fees the insurance company will have versus managing your portfolio through cheap online brokers in index funds. But if you uncle isn't the type to manage his own nest egg or is very conservative this may not be a bad thing. IMHO, there is much more space for annuities in a sound financial plan than there is for whole life insurance.
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