- 657
Is there anything out there that this can be done and bypass taxes.
Qualified Money into a Life Insurance Policy??
- Thread starter billberry12
- Start date
-
- Tags
- life insurance
- 10,328
billberry12 said:
Into a new policy or an existing policy?
What is the purpose of the policy?
What are the funds currently in?
What is the clients occupation and age?
- - - - - - - - - - - - - - - - - -
Basically the only way to really do it would be to have the policy inside a 401k.
If they are a business owner or sole proprietor, or are still employed then it might be possible.
There are different strategies when placing LI in a 401k, so it would all really depend on the clients situation and intent.
Last edited:
- Thread starter
- #4
- 657
Age 63, retired, money was rolled into a qualified indexed annuity over a year ago. It would be a new single premium policy. The purpose of the policy would be a death benefit greater than the cash in it, and one with accelerated benefits to supplement a long term care policy if care is ever needed.
Looking for a Lincoln Money Guard or Genowrth TLC type product. Can it be done?
Looking for a Lincoln Money Guard or Genowrth TLC type product. Can it be done?
- 10,328
I should have guessed you where after LTC protection.... lol.
As to your situation
What is the current surrender charge on the annuity?
It sounds like you need to wait out the surrender period most likely... unless this $ was just not needed for retirement income at all, it would be really hard to justify the loss of principle (I am assuming) from the surrender charge.
If the surrender isnt much, then it would have a very small chance of being suitable.
But as Larry pointed out; a rollover to an IRA is not allowed. So a 401k would have to be available (that accepts LI) before getting into anything else.
- - - - - - - - - - - - - - - - - -
As to the MoneyGuard type product, Im not sure.
A LI policy with a LTCI Rider can be done; but Im not sure about a hybrid product.
On the surface it seems like it could be done. I dont know of any restrictions against it, but there certainly could be.
Its a definite grey area.
I have a resource who would know for sure. PM me if you get to the point of needing to find out for sure.
Last edited:
- Thread starter
- #6
- 657
Retired teacher. rolled money from State retirement system into a 401k investment account four years ago. You know the rest of that story!!
Rolled it into a Great America Safe Return indexed annuity last May. Didn't earn anything since then. based on S and P and it went down.
She is simply trying to get her money to do something or benefit her more. The Annuity has a 100% guaranteed return of Premium rider, so there would be no surrender charges.
Rolled it into a Great America Safe Return indexed annuity last May. Didn't earn anything since then. based on S and P and it went down.
She is simply trying to get her money to do something or benefit her more. The Annuity has a 100% guaranteed return of Premium rider, so there would be no surrender charges.
- 10,328
Then I guess your options are open assuming the client has access to a 401k that allows LI.
- 15,041
I don't believe Lincoln will allow MoneyGuard inside a 401k. I'm pretty sure they require the money be non-qualified.
- 4,132
"The Annuity has a 100% guaranteed return of Premium rider, so there would be no surrender charges"
You might want to read that rider as it may apply to her death or after a surrender window. I could be wrong but I don't see any annuity company staying in business that offers full refunds at any time.
Read more: Qualified Money into a Life Insurance Policy??
You might want to read that rider as it may apply to her death or after a surrender window. I could be wrong but I don't see any annuity company staying in business that offers full refunds at any time.
Read more: Qualified Money into a Life Insurance Policy??
