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Should I invest in a Roth IRA or Variable Universal Life Insurance Policy?
I have a 401k / Not married, no children, but my advisor says it is advisable to invest in a policy variable universal life, while I'm young (premiums are lower) for the underlying cash value to help retirement, the more I will have a death benefit for later, when I'm married and have kids. Susie Orman thinks this is a bad idea and that 401k, and Roth IRAs are the way forward. Others think differently. I'm confused about what to do and I wonder if people who have signed a universal life policy variable results have been cash value when they are withdrawn. My illustration shows the value of $ 600,000 in cash when I'm 70 – that is, with a return 12%. I am wondering if I should go with this policy or use of the $ 200 a month would cost to fund this and invest in a Roth IRA instead or put more into my 401k. Any advice would be to help!
How old do you have? If you are young, go for the Roth. It grows tax free. If you are in their 20s, have 40-50 years to grow. As for the VUL, it offers a great advantage on paper, but note that the high costs that eat their statements. Moreover, There is great potential for the commission to your adviser for the sale to you over other options …
Life Insurance Policy Illustrations…Fact or Fiction?