And second to die GUL would be the least expensive by far vs WL for his/her client. (assuming no security licenses, the VUL-G products have been less expensive than traditional GUL for a while now).
Do IULs Ever Perform Close To Illustrations?
- Thread starter HappyGuy
- Start date
Lloyds of Lubbock
Guru
- 753
As single premium is a mec at issue.
It will not MEC in the future it never was a non-mec.
This I don't understand at all.
Of course, since we do not give Tax Advice, we only state to the client that the plan may be a MEC.
If you sell a single premium what part of being a MEC is may be?
If you RPU a policy in year 4, do you say it may be a MEC or just say "Hey you are creating a MEC"
BTW MEC is a three letter word..not a 4 letter word.
It is not the end of the world.
It will not MEC in the future it never was a non-mec.
This I don't understand at all.
Of course, since we do not give Tax Advice, we only state to the client that the plan may be a MEC.
If you sell a single premium what part of being a MEC is may be?
If you RPU a policy in year 4, do you say it may be a MEC or just say "Hey you are creating a MEC"
BTW MEC is a three letter word..not a 4 letter word.
It is not the end of the world.
- 10,806
You can design a single premium with certain WL carriers and not have it MEC.
Guardian is one of them.
Guardian is one of them.
- 10,806
Single Premium does not have to MEC.
You can do a limited pay design shorter than 8 years and avoid MEC.
Use Premium Offset instead of RPU.
RPU MECs prior to y8. Premium Offset does not.
- 4,998
Are you taking about using a PDA checking account fund to hold the money initially to gradually move the money into the contract or do they have some other sorcery
- 10,806
Nope. A single premium. Year 1. No premiums paid y2+.
Mostly PUAs. No MEC.
Or MEC it if you want it to have a better cash value return.
- 4,998
Nice, do they use CVAT instead of GPT or something. Just cant think of the creative sorcery of actually paying more premiums than an age/face can receive under MEC testing but not have it actually MEC
Using some form of term riders that go away?
Intriguing.
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Lloyds of Lubbock
Guru
- 753
Nope. A single premium. Year 1. No premiums paid y2+.
Explain this?
Better yet provide the illustration.
If you see a single pay on Guardian's illustration, it is not for new business.
It is for the exercising of a DuoGuard rider and it shold be a MEC
Now I have been retire for a bit so if I am wrong , I would appreciate the education.
Explain this?
Better yet provide the illustration.
If you see a single pay on Guardian's illustration, it is not for new business.
It is for the exercising of a DuoGuard rider and it shold be a MEC
Now I have been retire for a bit so if I am wrong , I would appreciate the education.
- 10,806
I can try and post it later.
But I can give you specs now.
L95
PUA Dividend Option (providing a 15:1 ratio in y1)
PUA Rider. Use Total Premium Solve.
Adjust Base Premium/Base DB as needed to meet Premium requirements.
10y Term Rider, maxed out.
Base usually needs to be increased at this point to prevent MEC.
(you don't know exact amount until adding the Term Rider.)
Sometimes you can decrease the Term a bit at this point.
Premium Offset in y2.
RPU in y8.
End Term Rider.
Single Pay complete
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- 10,806
WL uses CVAT.
UL will not work as well because most do not offer a term rider. And you cant RPU and guarantee no more premiums with a UL.
Guardian allows a 15:1 PUA to Base Premium ratio in y1.
That combined with Term Rider, Premium Offset using Dividends, & RPU in year 8. Gives you a single premium.
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