Ned Ryerson: “Phil? Phil Connors? Phil Connors, I thought that was you! Don’t tell me you don’t remember me because I sure as heck if I remember you!”
Phil: “Not a chance.”
Ned: “Ned Ryerson! Needle-nose Ned, Ned the Head! Come on, buddy, Case Western High! I did the whistling belly-button trick at the high school talent show? Bing! Got the shingles real bad senior year, almost didn’t graduate? Bing again! I dated your sister Mary Pat a couple times until you told me not to anymore?”
Phil: “Ned Ryerson?”
Ned: “Bing!”
Phil: “Bing.” Ned: “You don’t say! You know, I sell insurance now! Do you have life insurance, Phil? Because if you do, you could always use a little more — am I right, or am I right, or am I right? Right? Right? Right?” — Ned Ryerson, Groundhog Day

****Special Enrollment Brief****

GVUL for Southwest Pilots: Benefits, Blind Spots, and the Fine Print

By: Rob Eklund, Captain & Fiduciary Open Enrollment: October 13–24, 2025 Coverage Effective: January 1, 2026

Although this analysis is tailored for Southwest pilots, the insights and considerations regarding GVUL policies can generally apply to anyone evaluating similar group variable universal life insurance products.

Between Ned Ryerson’s enthusiasm, Peyton Manning’s charm, and even emus hawking insurance on TV, it’s no wonder insurance feels like a contact sport. With so much noise, finding the right path forward— especially when a new option like GVUL lands in your inbox—can be tricky.

Let us separate marketing from math and take a closer look at what this new MetLife Group Variable Universal Life (GVUL) offering really means for Southwest pilots— and where it may (or may not) fit into your financial flight plan.

The offer at a glance

SWAPA has announced a guaranteed-issue GVUL policy through MetLife, available for enrollment October 13–24, 2025, with coverage starting January 1, 2026.

• No medical questions — guaranteed issue up to $500,000.
• Portable — keep it if you retire, change jobs, or go on medical leave.
• After-tax, tax-deferred investment sleeve — optional payroll deductions.
• Southwest pays none of the premiums — this is 100% employeefunded.

The fiduciary view: the good, the bad, and the Bing

1. Premiums rise—fast
At age 47, a $500,000 policy may cost about $62 per month. By age 70, that climbs to $640 per month, and by age 80, $2,179 per month.

GVUL uses annually increasing cost-ofinsurance (COI) charges—like a term policy that quietly gets more expensive every year. The early years seem inexpensive, but the later years can erode value quickly. By age 70, GVUL premiums are 20x higher than at age 47, and by 80, they’re 35x higher. In contrast, a level term policy locks in stable premiums for the full term (10, 20, or 30 years).

2. A possible “sweet spot” — ages 50 to 55
In certain age brackets, GVUL can occasionally price lower than term, particularly between ages 50 and 55, depending on underwriting, health, and coverage duration.

For example:

• A 50-year-old pilot with health issues might pay $80/month for GVUL versus $100–$150/month for a medically underwritten 10-year term policy.

Also, if you need coverage for 5–10 years as a bridge to retirement and plan to drop it before costs accelerate, GVUL could be a temporary supplement rather than a lifelong anchor. By age 60–65, the economics often deteriorate, as most pilots’ accumulated assets (e.g., 401(k), investments) make further premiums unnecessary as they have become selfinsured as they say.

3. The investment sleeve — not your wingman
The GVUL’s investment sleeve offers taxdeferred growth, but its subaccounts come with high fees and limited choices. For example:

• Expense Ratios: Subaccounts often charge much more than the expense ratios of low-cost index funds (e.g., Vanguard S&P 500). Sometimes to the tune of 1%.
• Limited Options: Typically 10-20 subaccounts versus thousands of mutual funds/ETFs in a brokerage account.
• Tax Drawbacks: o No tax-loss harvesting (selling at a loss to offset gains elsewhere).
  • No tax-gain harvesting (realizing gains in low-tax years).
  • No step-up in basis at death (heirs inherit assets at market value, avoiding capital gains tax in brokerage accounts).

Gains are taxed at ordinary income rates (up to 37%) upon withdrawal, not lower capital gains rates (15-20%).

Plain English: The investment sleeve is like a locked toolbox-your money grows taxdeferred, but high fees and restrictions make it a poor substitute for a brokerage account or IRA. Insurance should protect against catastrophic loss, not replace disciplined investing.

4. For most pilots, term plus invest-thedifference wins
Level term coverage paired with a diversified brokerage account provides:
• Stable premiums for 10–30 years
• Transparency and simplicity
• Freedom to invest anywhere
• Access to all tax strategies (loss/gain harvesting, step-up, capital-gains rates)

Over a full career, that structure generally delivers greater flexibility and higher aftertax net worth than GVUL.

5. When GVUL can make sense
A fiduciary analysis always starts with why. GVUL may have a place if:

• Health concerns make you uninsurable elsewhere.
• You require permanent coverage for special-needs planning, estate equalization, or buy-sell obligations.
• You’ve maxed all qualified accounts (401(k), Roth, HSA) and still want a niche tax-deferred bucket, fully aware of the trade-offs.
• You’re using it as a short-term bridge into your 50s before letting it lapse.

Outside those lanes, GVUL is typically too expensive, too complex, and too inflexible.

6. Quick checklist before enrollment

1. Define your goal—income protection or estate need?
2. Compare 5-, 10-, and 20-year term quotes to GVUL.
3. Review projected premiums at 50, 55, 60, and 65.
4. Request the complete fee schedule (COI, admin, M&E, fund ERs).
5. Max your tax-advantaged accounts first.
6. Set an exit plan before the premium curve steepens.
7. Treat the investment sleeve as a locker, not a strategy.

1. Define your goal—income protection or estate need?
2. Compare 5-, 10-, and 20-year term quotes to GVUL.
3. Review projected premiums at 50, 55, 60, and 65.
4. Request the complete fee schedule (COI, admin, M&E, fund ERs).
5. Max your tax-advantaged accounts first.
6. Set an exit plan before the premium curve steepens.
7. Treat the investment sleeve as a locker, not a strategy.

The takeaway

GVUL’s guaranteed-issue feature is valuable—especially if new coverage is hard to obtain. But remember Ned Ryerson’s line: “If you do have life insurance, you could always use a little more—am I right?”

A fiduciary answer: Not necessarily.

GVUL can be a temporary, cost-effective bridge in your early 50s, but beyond that, rising premiums and limited flexibility make it less compelling. For most pilots, term plus invest-the-difference remains the smoother flight path. Shoot me a message if you have any questions or comments or need some help figuring out all of this (707)712-9387.

Disclosures

This material is for informational and educational purposes only and does not constitute personalized investment, tax, or insurance advice. Costs and features vary by policy, age, and health status. Always review carrier illustrations, fee tables, and policy documents. Tax laws and interpretations may change; consult your fee-only financial planner, CPA, or estate attorney before acting. All opinions are those of the author and subject to change without notice. Past performance is no guarantee of future results. This publication is not affiliated with Southwest Airlines, SWAPA, or MetLife.