NY IUL Plans and ECV rider questions

[Golfnut2112]

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

I use a short duration fund that comes with a checkbook which is nice. I am actually up around 3% not great but its liquid.

 

[Allen Trent]

No

Please elaborate. Are you saying there are no carriers licensed in other states that can sell a product to a resident of NY while the applicant is in the other state? Just curious as I am unaware of such a restriction on a fixed insurance product. I am aware that carriers cannot sell in states they are unlicensed & agents cannot solicit outside the state's they are licensed in. But I am unaware that a consmer is restricted to buy insurance in another state.

If it was a securities or variable product, I believe there are more restrictions.

 

[Tothetop]

Please elaborate. Are you saying there are no carriers licensed in other states that can sell a product to a resident of NY while the applicant is in the other state? Just curious as I am unaware of such a restriction on a fixed insurance product. I am aware that carriers cannot sell in states they are unlicensed & agents cannot solicit outside the state's they are licensed in. But I am unaware that a consmer is restricted to buy insurance in another state.

If it was a securities or variable product, I believe there are more restrictions.

Its not that simple my friend. As an agent in New York, been there, thought about all of that. You cant just cross over to NJ and sign an app and come back. The insured has to be living or working in that state. And some companies even if the insured is working in that state they still prefer you write in the insured's resident state.

 

[Tothetop]

Thats why you have agents who have a home office in New York, but they set up a satellite office in Jersey or Connecticut. It helps with these type of compliance issues.

 

[Tahoe Ray]

Please elaborate. Are you saying there are no carriers licensed in other states that can sell a product to a resident of NY while the applicant is in the other state? Just curious as I am unaware of such a restriction on a fixed insurance product. I am aware that carriers cannot sell in states they are unlicensed & agents cannot solicit outside the state's they are licensed in. But I am unaware that a consmer is restricted to buy insurance in another state.

If it was a securities or variable product, I believe there are more restrictions.

Tothetop is right.

Situs in NY (for NY residents) is much more restrictive than every other state.

While each carrier is different, some carriers require a residence outside of NY and others will let a non-res agent write one, as long as the client meets in his/her office. Both of those examples require solicitation, app, and delivery to occur outside of NY.

There must be a compelling nexus for a NY resident to write a non-NY product.

A while back, agents were selling Allianz FIAs the exact way you described.

Many agents were fined 10s of thousands of dollars for doing so. Some lost their licenses.

NY is a weird state when it comes to insurance products.

The good news it that there are still plenty of solid IULs available for purchase in NY.

 

[Tothetop]

Some companies will let you sell their product out of state even if its not licensed in New York and others wont let you touch their product with a 10 foot pole if your resident license is NY.

 

[Tomacatawata]

NY is a weird state when it comes to insurance products.

The good news it that there are still plenty of solid IULs available for purchase in NY.

I know of Securian and National Life Group. Are there any others?

 

[Tahoe Ray]

I know of Securian and National Life Group. Are there any others?

There several more. Not all are great.

Off the top of my head: Lincoln, Pru, AXA, AIG, Hancock, Zurich and the ones you mentioned.

 

[Tomacatawata]

There several more. Not all are great.

Off the top of my head: Lincoln, Pru, AXA, AIG, Hancock, Zurich and the ones you mentioned.

I was hoping there was some way I could see a NA/Midland. Too bad. I do own a few houses out of state though, I guess theres no way I can somehow say one of those homes are a 2nd home and use that right?

 

[pfg1]

You can absolutely use a max funded policy like your own personal bank. I've done it numerous times personally, and have many clients that do it. I have a real estate investor client that does it all the time. Collateralizes a loan against his policy, cash in hand in a couple days. His bucket of money (cash value) is still compounding forward even while he's using the money...small amount of interest paid to the insurance company on the loan while its out.