Product Help - Final Expense type (1035s)

I have alot of small paid policies...anything I can do with them? All old paid up whole life policies where the cash value is almost equal to the death benefit - no paid up add or dividend options so my objective is to move these 10k Paid Up whole life policies essentially 1035'd into a GI or similar. (Ex. 70yo has Paid Up 10k DB Whole Live, $8,960 in cash value). Some larger some smaller

Is there any product in the market you can buy a paid up policy using the exchange values - basically putting a lump sum of 8.9k to purchase a Guaranteed 14k policy...

Thanks in advance. As a 13 year vet and CLU, I should know this.
 
I have alot of small paid policies...anything I can do with them? All old paid up whole life policies where the cash value is almost equal to the death benefit - no paid up add or dividend options so my objective is to move these 10k Paid Up whole life policies essentially 1035'd into a GI or similar. (Ex. 70yo has Paid Up 10k DB Whole Live, $8,960 in cash value). Some larger some smaller

Is there any product in the market you can buy a paid up policy using the exchange values - basically putting a lump sum of 8.9k to purchase a Guaranteed 14k policy...

Thanks in advance. As a 13 year vet and CLU, I should know this.

As Somarco said, SPWL. However, what makes you say it needs to be GI?
 
Why in the world would you want to take paid up policies and move the client to a GI? That is dumb . . .
 
You're saying there's a SPWL product that you can use a rollover of 8k to buy 15k, for example? Needing to find a product that has face amounts between 10k-20k that accept 1035's.

Just trying to avoid the full underwriting route as most of these clients are age (60-85). Doesn't mean uninsurable by any means, but since most of already paid up, they don't want to pay more premium - just increase DB with the cash in the policy that's almost equal to their DB
 
Todd, I don't write life insurance and can't recall when I have written an SPWL, but isn't the underwriting minimal? Basically underwriting the difference between the CV and FA?
 
You're saying there's a SPWL product that you can use a rollover of 8k to buy 15k, for example? Needing to find a product that has face amounts between 10k-20k that accept 1035's.

Just trying to avoid the full underwriting route as most of these clients are age (60-85). Doesn't mean uninsurable by any means, but since most of already paid up, they don't want to pay more premium - just increase DB with the cash in the policy that's almost equal to their DB
Have a friend that is using Settlers plans on a single pay basis to do 1035 rollovers from old AGLA plans.. He hasn't had any problems with them. It is simplified underwriting..
 
Also converts a potentially taxable distribution (if surrendering the policy) to tax free death proceeds

Taxes may not be an issue with your client but it is another reason to 1035 into an SPWL

This is a very important point. It becomes free money. Pick up more DB and it remains tax free... (Amount you add to the DB) + (what you might pay in taxes for cash) = net plus to your beni.

Strange way to look at it, but if I were seated across the table from you... you know I would be showing those numbers to you. (And, with the right company, you still keep some cash value available if things go south. Win - Win.)
 

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