Material change in life insurance

[macquotes]

Hello everyone, are you familiar with Material Change within life policies that allows a policy to remain a non-mec even though it is extremely over-funded and by other life companies is considered a MEC???

Does anyone know of what other companies recognize "Material Change" besides Minnesota Life & American National?

If so, please send me a message ASAP!!

Thank you,
Paul

 

[LGilmore]

No? But question... doesn't the government decide what is a MEC? An insurance company just tests and informs you of it. They don't have the ability to waive it, wouldn't that come from the IRS?

 

[scagnt83]

Hello everyone, are you familiar with Material Change within life policies that allows a policy to remain a non-mec even though it is extremely over-funded and by other life companies is considered a MEC???

Does anyone know of what other companies recognize "Material Change" besides Minnesota Life & American National?

If so, please send me a message ASAP!!

Thank you,
Paul

As far as a Material Change to prevent a Mec, no. The only way I could see this working is if the Material Change was to increase the DB beyond the normal policy gains... which would require new UW.


Every company recognizes a "Material Change". A Material Change is usually a reduction in DB. But it can be other things as well.

 

[macquotes]

Good point so what Minnesota Life and American National both do is they use the rule of material change and allow the large dump ins. Believe me the lawyers at these companies know exactly what they're doing.

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Good point however that is not how it is done at all.
Minnesota Life and American National both do is they use the rule of material change and allow the large dump ins. Believe me the lawyers at these companies know exactly what they're doing.

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Nearly no other companies recognize Material Change. If they did you and the rest of us would be able to name many that utilizes this sort of tactic.

 

[VerityFG]

Good point so what Minnesota Life and American National both do is they use the rule of material change and allow the large dump ins. Believe me the lawyers at these companies know exactly what they're doing.

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Good point however that is not how it is done at all.
Minnesota Life and American National both do is they use the rule of material change and allow the large dump ins. Believe me the lawyers at these companies know exactly what they're doing.

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Nearly no other companies recognize Material Change. If they did you and the rest of us would be able to name many that utilizes this sort of tactic.

So.... Are you saying that you think this is wrong and they are playing with fire or that it's a legit tactic.

FYI - I'm very familiar with this and use one of the named companies to do this very thing.

 

[macquotes]

Great, I think it is very legit. So you use ML for Material Change, it sounds like?

I was just wondering if any other companies do this and how well they do. American National concerns me because of their 15% max on variable loan rate, which is way too high for my comfort level.
If you know other companies besides ML & ANICO please let me know who they are.
Thank you!