Colorado Bankers (CB Life)...

[Allen Trent]

My policy value is 114800 and my taxable interest is 15300,basis is 99500. The 25% distribution amount is 28700 of which 15300 will be taxable and 13400 return of capital(not taxable).
In the future since all interest @1% will be paid out monthly, the 86100 remaining balance will not grow, and sometime in the very distant future the entire 86100 will be non-taxable, as I see it.

So, if you take the 25% directly, you could just pay the tax on the $15,300 current tax bracket. Remember, the 2017 TCJA tax cuts, higher standard deduction & higher estate tax exemption expire in 2025, meaning those items revert back to 2017 levels or higher if new bill passed. Might be better to pay tax now depending on your age & overall tax situation. If you do this, the remaining CBL will be all tax free cost basis left in the contract (except for future interest you might allow to build up).

If you 1035 exchange to new or existing NQ annuity, the $28,700 you 1035 will get a 25% pro rata split of both current cost basis & current gain & the CBL will retain 75% of both the cost basis & gain.(assuming CBL properly reports it to the new carrier--not all report this & if not reported, the new carrier is required by law to set up the entire amount as taxable gain that was sent to them without cost basis reporting received)

 

[ACDC]

Have anyone received letter regarding the 25% withdrawal yet? I am in the same boat with my retirement money locked up by CBL insurance scam, we were mislead by our Citizens Bank wealth manager and now he will not return our voicemails or calls.

 

[Phyllis Christos]

No letter yet.
Are you in Massachusetts?
Secretary of State’s office is still doing their investigation into Citizens.
Have you called that office and spoken with Patrick Costello? 617-727-3548

 

[ACDC]

No letter yet.
Are you in Massachusetts?
Secretary of State’s office is still doing their investigation into Citizens.
Have you called that office and spoken with Patrick Costello? 617-727-3548

I have not contact the Secretary of State’s office yet as I just found out about this Colorado Bank Life Insurance and citizens Bank fiasco. I will contact them and let them know we were led to believe the Colorado Bank Life Insurance Annuity was a safe retirement investment, which we all know is not true that this point.

 

[Phyllis Christos]

Big part of the investigation is centered on the Citizens sales reps who were writing what's called "over the limit" policies.
The Mass State Guaranty Association only covers these policies up to 250 grand....despite what Citizens was telling customers...

So if your Citizens rep wrote your policy over that amount....you may be part of a large group of us looking to take legal action.

As far as the 25% withdrawal letter goes -- we were told to expect that letter at the end of September.
(But that letter has nothing to do with Citizens. Citizens has completely washed their hands of all of this -- taking zero responsibility for their employees' negligent actions -- -- and no longer communicating with the customers they lied to in the selling process)

 

[rats0001]

www.ncrehabwithdrawal.com is alive, links to a kroll.com form, but I don't have the code to enter from the letter.

Is anybody going to try to do a 1035 exchange? I'm not sure I trust them to do it correctly.

 

[Newby]

Big part of the investigation is centered on the Citizens sales reps who were writing what's called "over the limit" policies.
The Mass State Guaranty Association only covers these policies up to 250 grand....despite what Citizens was telling customers...

So if your Citizens rep wrote your policy over that amount....you may be part of a large group of us looking to take legal action.

As far as the 25% withdrawal letter goes -- we were told to expect that letter at the end of September.
(But that letter has nothing to do with Citizens. Citizens has completely washed their hands of all of this -- taking zero responsibility for their employees' negligent actions -- -- and no longer communicating with the customers they lied to in the selling process)

They aren’t allowed to tell you about any state guarantee program at all. They are only allowed to tell you about things actually guaranteed by your contract. Your contract is guaranteed up to the claims paying ability of the insurance company. That’s all the sales agent could tell you about or promise you. If you have anything in writing that he went beyond that, then you can file a claim against the agent.that sold it to you.

 

[Tahoe Ray]

They aren’t allowed to tell you about any state guarantee program at all. They are only allowed to tell you about things actually guaranteed by your contract. Your contract is guaranteed up to the claim is being ability of the insurance company. That’s all the sales agent could tell you about or promise you. If you have anything in writing that he went beyond that, then you can file a claim against the agent.that sold it to you.

Totally agree in an inducement of sale and/or advertisement but it certainly isn't illegal to discuss if asked. Most state's annuity policies have a form specifically outlining the guarantee associations' coverage amounts.

Phyllis's big problem is that her agent was misinformed or ignorant and thought that he was doing them a favor by listing them both (her and her husband) on their policy. Had he split the policies between each, they would be fully covered.

 

[Newby]

Totally agree in an inducement of sale and/or advertisement but it certainly isn't illegal to discuss if asked. Most state's annuity policies have a form specifically outlining the guarantee associations' coverage amounts.

Phyllis's big problem is that her agent was misinformed or ignorant and thought that he was doing them a favor by listing them both (her and her husband) on their policy. Had he split the policies between each, they would be fully covered.

I don’t know about that. That seems like a gray area. When I was trained on annuity sales they told us if we give any indication that we are guaranteeing that the state guarantee funds will be in place and they will be covered by it we are over stepping and liable. It’s a weird situation. But the program exists as a sort of safety net. But no agent is allowed to say you will definitely be included in it. We could only guarantee up to the insurance company’s ability to pay. And at one time all annuity policies had that exact verbiage on them.
And if you disagree, try putting it in writing that THIS policy I’m selling you will be included in state guarantee protection in the event that the insurance company fails.
If you can’t put it in writing, you can’t say it either.

 

[Tahoe Ray]

And if you disagree, try putting it in writing that THIS policy I’m selling you will be included in state guarantee protection in the event that the insurance company fails.
If you can’t put it in writing, you can’t say it either.

I'm not putting it in writing. The carriers literally do this. It's part of the policy/application in a number of states.