770 Accounts?

Does anyone here know anything about these?

For real, urban legend, or ??????

Sorry if this has been covered before.

 

 

They are a life insurance product where the premiums are invested.  In short...if u have a 1million$ policy, the premiums will grow tax free and the distribution you take is also tax free. The catch is, if were to take 300k out of the policy, tax free..what you don't pay back comes out of the death benefit...So your life policy becomes 700k..Hope that helps

Are these the same as what I know as "variable" policies? 

I of a couple individuals who had these policies.  Concept sounds great, but if the insured lives to an older age, then at that time the amount the insurance company deducts for the "cost of insurance" skyrockets.  Any cash value can be quickly sucked away.  These policies need to be heavily funded in the early years.

Yes...Usually they call it "overstuffing"   These are great for people who do have a lot of cash..These would work great for kids to start out with rathe than mutual fund...its a good concept.  Your premiums are invested in sub accounts, which are mutual funds.