Good carrier to 1035 cash value for death benefit

Dec 4, 2018


    HORACE New Member

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    Hi guys, I was just wondering who y'all use to maximize death benefit when 1035ing cash value.

    Situation is: 62 yo male, put 40k into a UL in the 80s, the policy is starting to eat itself, but currently has 56k of cash value.

    Client just wants straight (max amount) of death benefit without putting any more cash into the policy. Has a nonmalignant tumor in the pituitary gland but otherwise healthy, so very possibly will be a decline many places. Would maybe look at an annuity with LTC rider if that's an option.
    HORACE, Dec 4, 2018
  2. Allen Trent

    Allen Trent Guru

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    before you potentially do the client a disservice with that kind of health history, direct him to get an indepth analysis of his current UL options. He needs to find out if they have a reduced paid up option, do they allow him to convert to a WL as some carriers are offering to old UL clients. does he have any lump sum cash access that he could dump into the UL from other sources like Bank CD, retirement, stocks or even Home equity loan. it may be in his best interest if he is uninsurable to find a way to solidify what he already has in place

    I am suggesting that as I have seen a couple clients 1035 out of old contracts & then die in the contestability period.

    at best, it is sounding like this may be a rated case.

    if he is insurable, most any of the GUL carriers would be a good option to get the max face with no lapse guarantee