HELP! Variable Annuity Question/ Scenario

[KJ in Miami]

Fist there is no way for the initial 150K cash to get 1.5 million DB for an annuity, even with garanteed roll up every year. But for UL or VUL, possible. He must have purchased a lump sum premium UL, not annuity
a ten year old VUL or UL may still have surrender charge so be very careful to explain to the client about that.
VUL or UL policy can use 1035 exchange to transfer to Annuity without tax issue. The fix annuity will not get him the 6%-7% return at all. But variable annuity does not have guarantee of return, except guarantee for income or DB. At present time, all VA companies are reducing their guarantee to Income or DB to 6% or less. If you liquidate after ten year, your guarantee for the Income or DB will be lost. The index annuity may have some good feature about not losing money. But the return may be limited, especially lately. There is no way to guarantee the ROR unless it is fixed annuity. But fixed annuity will only guarantee 3% or less.
If you use the 80K cash to get an annuity, his 1.5 million DB will be gone. So better not to do anything in my opinion.

Agreed. As indicated above, it may have an annual step-up and the income he has generated in there might be $1.5 M (not likely but possible). However, 10-yrs ago this VA product might not have been available (before my time). Just because he has $80,000 in there means little unless it is in the income value.