Access to CV w/o surrender charge?
- Thread starter lcodilla
- Start date
- 10,323
Midland/North American has it. Allianz used to have it, probably still do. LFG has it but only for business cases.
- 4,567
many do. but keep in mind, the client pays additional ongoing costs many times for this privilege. Also, to offset that risk to the carrier, many carriers pay reduced compensation to the producer that spreads the compensation out over 3-7 years depending on the premium size to lessen the risk to the carrier that the client will walk with most of the cash after the carrier paid underwriting costs, options costs, taxes, commissions without a surrender charge protection
like others have said, other than unique large business cases that need to see an asset stay level on their balance sheets, there really is no need for this & it impact the performance of the cash value slightly over the years.
like others have said, other than unique large business cases that need to see an asset stay level on their balance sheets, there really is no need for this & it impact the performance of the cash value slightly over the years.
- 11,274
High Early Cash Value policies may be different than waiver of surrender charge riders.
I know Midland and North American offer this waiver... however the chargeback risk period is extended out to 3 years.
I know Midland and North American offer this waiver... however the chargeback risk period is extended out to 3 years.
- Thread starter
- #6
jdumond
Expert
- 44
Um....a loan?
- 477
Um....a loan?
It won’t work, you can only loan the cash value otherwise why have surrender charges
jdumond
Expert
- 44
Sorry, I wasn't sure which emoji would indicate tongue in cheek. Apparently, I chose the wrong one. Yes, you are correct
Jason T Brown
New Member
- 10
Yes, there's several accurate and good comments here on previous responses! I've worked with IUL since the late 90's and I know of several carriers that offer early cash value riders and/or waiver of surrender charges on their IUL products (way more than North American/Midland). Just remember, nothing is free! These riders can be the perfect prescription/remedy for the customer when this is needed, but your 1st year compensation will (naturally) be dramatically reduced. Furthermore, some of the premium finance companies will require this feature/rider be elected if you're doing premium finance and using IUL. For example, Allianz Life, Ameritas, LSW/National Life and Minnesota Life (Securian) are just a few examples. - JTB
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