Michael Goodman, Life Insurance Agent

I am available to meet by appointment.  I work out of Northridge, California.  My email address is –

I will also answer any insurance-related question ASAP if you send it by email.





Be Sociable, Share!

2 Responses to Contact

  1. Edwin says:

    Pls advice what are the pros and cons of starting and funding an FFIUL using borrowed money from my 401K while I am still employed and in accumulation phase.

    • Michael Goodman says:

      I assume you’re talking about the Financial Freedom IUL (FFIUL) from Western Reserve Life? I’m not real familiar with this product, but a check online gives me the impression that it’s an IUL with a long term care (LTC) rider. Their LTC rider is not yet approved in California, according to their website, so I cannot offer it to my clients. But even if I could, it would require a discussion about the client’s goals and needs before I could reccommend it. So, having covered my bottom, I will say this about the idea of borrowing money from a 401k to fund an IUL. I wouldn’t recommend this. As I discussed in my article about “The 401(k) Versus the IUL (Part One)”, you would be borrowing money at 5% that has to be repaid within 5 years or be subject to early withdrawal penalties and income taxes. I don’t see any upside to this idea. A much better idea is to just reduce your deposits in the 401K and put the same amount into an IUL. You would not get the immediate tax deduction for the premium paid into an IUL, but the amount of the premium that exceeds the insurance cost would be able to grow tax deferred, could be accessed later for just about any reason using income tax free policy loans at much better terms, and your heirs would receive a tax-free estate when you die, instead of the tax bill they’re likely to get when you pass on the balance in a 401K.

Leave a Reply

Your email address will not be published. Required fields are marked *