MEC As CD/Annuity Alternative

[Norwayguy]

Okay a year ago someone was talking about First Catholic Slovak something or other a Fraternal which had a single premium whole life policy which looked great CSV equal to 100% of premium day 1 with guaranteed growth of 3% plus obviously the death benefit. I just spoke with them and they have revamped the product so that CSV does not equal premiums paid till year 5.

My question does anyone else have something similiar. I have a small case that could work well with this concept. 64 female Maine non-smoker with 10K-14K for single premium. Her desires are to have the most interest possible is not interested in any indexing product already has enough equities and existing index annuities and she wants liquidity.

Anyone have any ideas?

 

[scagnt83]

Okay a year ago someone was talking about First Catholic Slovak something or other a Fraternal which had a single premium whole life policy which looked great CSV equal to 100% of premium day 1 with guaranteed growth of 3% plus obviously the death benefit. I just spoke with them and they have revamped the product so that CSV does not equal premiums paid till year 5.

My question does anyone else have something similiar. I have a small case that could work well with this concept. 64 female Maine non-smoker with 10K-14K for single premium. Her desires are to have the most interest possible is not interested in any indexing product already has enough equities and existing index annuities and she wants liquidity.

Anyone have any ideas?

Yeah, IUL.... lol.

JK, but not really.
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You should just look at single paying a traditional UL.

It wont be 100% liquid right away, but there will be cash there to access.

The problem is that $14k is not much to fund life insurance on a 64 year old.
You will need to look at companies that issue under $100k.

ING might be a good option to look at.

But with the rate environment right now I find it hard to recommend much traditional UL these days.
Rates combined with her age and just $14k will probably make this tough.

 

[WPM]

You could take a look at Assurity's SPWL.

 

[stuy119]

Here's another idea:

If she has a lot of annuity products currently, why force yourself into a MEC? Fund an IUL right now with what she has that's liquid, and as the annuities mature, put that money into the IUL. She'll see a great return, avoid a MEC situation, and be able to see it grow, not to mention have the money tax-free via loans down the line.

 

[Norwayguy]

Here's another idea:

If she has a lot of annuity products currently, why force yourself into a MEC? Fund an IUL right now with what she has that's liquid, and as the annuities mature, put that money into the IUL. She'll see a great return, avoid a MEC situation, and be able to see it grow, not to mention have the money tax-free via loans down the line.

I know that's an option.....But I have dealt with this woman for about 8 years and I think she would have taken the spwl from first catholic because it represented 100% CSV on day one growing at 3% guaranteed and pitching the added death benefit.

I think she could see thinking outside the box on that one, I don't think she will go for an IUL for loans down the road....Just going to go the easy route and sell he another fixed annuity with ROP like she just bought.

 

[BNTRS]

Maybe Midland/North American's HECV CAUL with waiver of surrender?

The outlay makes it a bit iffy.

I'd suggest MassMutual's HECV but they won't let you reduce pay-up until you hit year 11 so the offset might not work out so well.

Lafayette Life has a very nice SPWL contract that will allow you to drop the db to $25k and load the rest of the dump in as PUA's, which augments the yield.

 

[TwiLight]

Sagicor has a Fixed Index Single Prem Whole Life with a 10% bonus plus 3 index options. Premium minimum is 5,000.

Guaranteed to return premium from day 1. Best Consumer based SPWL on the market for Cash Value Growth. Based on my humble opinion.

Unfortunately they are not in the North East (Maine).

My recommendation would be North American or Lafayette Life for your State. PM me if you need additional info.