North American Rapid Builder As an "investment."

Discussion in 'Indexed Universal Life Forum' started by ltcadviser, Aug 16, 2016.

  1. ltcadviser
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    ltcadviser Well-Known Member

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    I was asked about the North American Rapid Builder IUL survivorship policy by a couple in their mid to later 60s as a single premium investment to leave $ to their beneficiaries. I admit I have never been attracted to any indexed insurance products, however I would be open to understanding the pros/cons of this policy compared to other options?
     
  2. scagnt83
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    scagnt83 Well-Known Member

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    Pros:

    Gives an enhanced DB. Can turn $100k into $200k.

    Allows them to keep access to the money if need be. Access be via Loans. They have a "wash" loan option that is zero load on the policy.

    For a properly designed single premium policy, it will be Guaranteed for around 15-20 years. Even at very low assumptions (such as Indexed based returns at 4% for the life of the contract), it will be guaranteed.


    Cons:
    Not a whole lot if they plan to gift this to loved ones. Using an indexed product means there is not a lifetime guarantee.... but that is also assuming the stock market returns 0% every single year.... so it is not a realistic assumption.

    You might could find a product other than NA that gives a higher DB, but it would be at a cost of the CV return.


    A negative that is specific to this product/carrier, is that UW gets very tight with NA on older clients. LFG is MUCH more friendly with the 60+ crowd.



    Single Premium Life Insurance is one of the most efficient ways possible to pass money on to heirs. Especially if you still want access to the funds in case of an emergency.

    And when doing a lump sum, most all of the fears about index returns vanish... because it will not lapse even down to very low index return levels.
     
    Last edited: Aug 16, 2016
  3. Lewis_FL
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    Lewis_FL Well-Known Member

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    or consider Nationwide's no-lapse SUL with the LTC rider. $100k gets 'em around $2500 a month each for LTC if they need it or $250k for the beneficiaries if they don't. No worries if it doesn't perform.
     
  4. DWPCL
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    DWPCL Well-Known Member

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    Is this approved in Florida yet?
     
  5. AboutThatLife
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    AboutThatLife Well-Known Member

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    From what I understand, the benefit at that level is practically useless.
     
  6. todder
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    todder Active Member

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    what is the commission rate generally speaking on single premium?
     
  7. Lewis_FL
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    Lewis_FL Well-Known Member

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    no not FL yet. "maybe" this year...

    ----------

    same as level premium but with a couple % on the excess
     
  8. scagnt83
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    scagnt83 Well-Known Member

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    Define useless.
    ________________
     
  9. jboussea
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    jboussea Well-Known Member

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    If you assume 4% for a 60 yr old it would lapse after 20 years if properly designed..?

    That doesn't sound so attractive.
     
  10. scagnt83
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    scagnt83 Well-Known Member

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    I never said that.
     

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