Can I Get Help from a Mass Mutual Agent?

[bc2051]

I'm helping a client out who has an existing Mass Mutual Whole life policy issued in the 90s. It's going to mature at age 100 and the owner will be issued a check. I've read this happens on all policies before 2007. Both fortunately and unfortunately, this is a great policy and the cost basis is low. This means she will receive a 1099 and will be taxed heavily on ordinary income above her basis. She has real concerns about living to 100.

We're just in the early stages and I don't know if I would have an option to replace this, but just curious what could happen on the other side.

My questions
1. Does MML offer an extension on old policies?
2. What is the oldest age MML can write a new policy in an exchange?
3. Are there any other options within MML? She's 89 now and has about 675k of cash value. She's comfortable with 5k premiums. Any idea what the DB would look like at age 90 and also at age 103? An illustration would be great if someone was kind enough to email one. I'm in GA.

Thanks in advance,
BC

 

[Josh]

This isn't my area of expertise, but is there any reason she couldn't do a 1035 on another product when the time comes?

 

[Norwayguy]

This isn't my area of expertise, but is there any reason she couldn't do a 1035 on another product when the time comes?

But when "the time comes" is age 100 she could 1035 to an annuity but that defeats the purpose of what I think the OP is trying to do.

 

[bc2051]

She could but will still have to pull all of the gains out and will still be taxed. It also has to come out in 5 hrs after she dies. Goal is to keep it completely tax free

But when "the time comes" is age 100 she could 1035 to an annuity but that defeats the purpose of what I think the OP is trying to do.

 

[DHK]

I think the OP should contact their local GA and become appointed with Mass as a broker. Then they can be appointed and get whatever information they want regarding the contract in question.

 

[Tahoe Ray]

I think the OP should contact their local GA and become appointed with Mass as a broker. Then they can be appointed and get whatever information they want regarding the contract in question.

I agree. Only a few carriers will even issue a policy at this age (Trans, JH and Symetra are options) but the face will probably be less than the 1035. Assuming that you only care about the death benefit, you also will have issues with a no lapse face and the 1035 dump in (carriers are limiting premiums in the first year) so anything that you could do with Mass internally may be your best option.

 

[BNTRS]

Where are you located in GA, I potentially know the guy you'd speak to at Mass to become appointment with them if you took that route.

You can't extend the maturity date on their product, you could try to move to a different product if she's insurable. At 89 you need to move with some degree of urgency as age 90 tends to be the cut off for most products, and underwriting someone at that age isn't typically a walk in the part.

$5,000 per year isn't going to fly. At her age driving a death benefit down to $100,000 on a new policy will command a premium somewhere around 4-5 times that amount.

If she doesn't plan on using the cash value for anything, and I mean really doesn't plan on using the cash value. You could look in the guaranteed universal life direction and use that cash value to maybe get to the premium amount you're looking for.

You'll probably create a MEC, but if the goal is really creating a tax free death benefit that shouldn't matter.