NY IUL Plans and ECV rider questions

Tomacatawata

New Member
11
Hi All,

I am 31 year old healthy guy looking to get an WL/IUL policy. I want to grow my CV as quickly and as fast as possible and would like some recommendations on who to contact and what to look for. I also have an old policy from Metlife that I believe was also designed for some storage of CV, although not optimized.

The purpose of this would be to use it as an opportunity fund my real estate investments and as a general savings account for future excess money. I plan to fund it for at least 25-30K every year for the next 5 years. If no unforeseen circumstances occur I would probably fund it in until I retire.

I am drawn to the IUL option but since I live in NYC, I know my options are severely limited. Who are the good providers that offers IUL's in NYC? I know of Securian and National Life. Are there others or are those the two I should stick to?

I know that with IUL there is usually a one year waiting period before i can use any money from my account due to the surrender charges but an ECV rider would negate that. It is also my understanding that an ECV rider would cause a huge drag on CV growth at later periods. Does anyone have any data on how much of a % a drag this would end up being? Is it the same type of drag across all providers?
 
Hi All,

I am 31 year old healthy guy looking to get an WL/IUL policy. I want to grow my CV as quickly and as fast as possible and would like some recommendations on who to contact and what to look for. I also have an old policy from Metlife that I believe was also designed for some storage of CV, although not optimized.

The purpose of this would be to use it as an opportunity fund my real estate investments and as a general savings account for future excess money. I plan to fund it for at least 25-30K every year for the next 5 years. If no unforeseen circumstances occur I would probably fund it in until I retire.

I am drawn to the IUL option but since I live in NYC, I know my options are severely limited. Who are the good providers that offers IUL's in NYC? I know of Securian and National Life. Are there others or are those the two I should stick to?

I know that with IUL there is usually a one year waiting period before i can use any money from my account due to the surrender charges but an ECV rider would negate that. It is also my understanding that an ECV rider would cause a huge drag on CV growth at later periods. Does anyone have any data on how much of a % a drag this would end up being? Is it the same type of drag across all providers?

I believe ECV is more about making your business balance sheet stay solid instead of having say a 100k premium payment drop your businesses asset values. If you plan to take money out in 1st year, it will not be good because those early policy years have some of the higher expenses between the load fees on the premiums, the policy fees, 1st decade policy issuance charges. Set it up to plan to not touch it for decades

If you are restricted in NYC in carriers available, travel to nearby state to purchase the product you want. Generally, you only have to be standing in that state when you sign the initial application. All other items like phone interviews, labs/exams & receiving the policy can be done where you live
 
If you are restricted in NYC in carriers available, travel to nearby state to purchase the product you want. Generally, you only have to be standing in that state when you sign the initial application. All other items like phone interviews, labs/exams & receiving the policy can be done where you live

Is it that simple?
 
I believe ECV is more about making your business balance sheet stay solid instead of having say a 100k premium payment drop your businesses asset values. If you plan to take money out in 1st year, it will not be good because those early policy years have some of the higher expenses between the load fees on the premiums, the policy fees, 1st decade policy issuance charges. Set it up to plan to not touch it for decades

I was hoping to use the policy like a revolving checking account for my real estate investments. Borrow a bit of the funds and pay it back.

Originally, the idea that was first sold to me, and one I am still seriously considering is just using a bank LOC for the first year. I would get prime rates with the IUL policy as collateral and have the speed and convenience of the bank. Only downside is I have to pay it back, but I was planning on doing that anyway. Not sure if that is a good idea or not. It sounds great, but I am also reading/listening other things that are against a strategy like that.
 
Why would you want to use a life insurance policy as opposed to a bank account or a conservative mutual fund of ETF? There are a lot of fees, loads and cost of insurance charges in a life insurance policy and you may not even show a positive return for 8 to 10 years or maybe longer. You also may get the privilege of paying loan interest to the insurance company.
 
Why would you want to use a life insurance policy as opposed to a bank account or a conservative mutual fund of ETF? There are a lot of fees, loads and cost of insurance charges in a life insurance policy and you may not even show a positive return for 8 to 10 years or maybe longer. You also may get the privilege of paying loan interest to the insurance company.

I have a relatively substantial stock portfolio already. Why on earth would I use that as a savings vehicle?

I don't mind the 3 year "loss" that I incur with the initial set up and the 5 year to break even, I have access 87% of the money during my first year, which is more then enough for me to use for any real estate opportunity that might come up, or any maintenance/vacancy reserve that I might need during the year. I've seen how my 10 year old Metlife policy has worked, and it's really, really good. Much better than a bank, and I love the idea of using my money in two places at once.
 
I have a relatively substantial stock portfolio already. Why on earth would I use that as a savings vehicle?

I don't mind the 3 year "loss" that I incur with the initial set up and the 5 year to break even, I have access 87% of the money during my first year, which is more then enough for me to use for any real estate opportunity that might come up, or any maintenance/vacancy reserve that I might need during the year. I've seen how my 10 year old Metlife policy has worked, and it's really, really good. Much better than a bank, and I love the idea of using my money in two places at once.

I actually said a conservative mutual fund or ETF which would probably be a bond or a floating bank loan type of account. If you feel life insurance is the way to go, then by all means do it you know your situation better than anyone on this forum.
 
I actually said a conservative mutual fund or ETF which would probably be a bond or a floating bank loan type of account. If you feel life insurance is the way to go, then by all means do it you know your situation better than anyone on this forum.
I don't know how "Safe" conservative bond funds are, considering they go down in value when interest rate rises. Anyone who invest in TLT or any other bond fund in the last few years would have gotten a 10-15% cut.

I kinda like the added db as well, though hopefully I won't ever need it :)
 
Back
Top