Qualified Money into a Life Insurance Policy??

[Norwayguy]

"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??

He is right about the GAFRI Safe Return offering a return of premium. It is not all that unique as other carriers offer similiar riders.

 

[billberry12]

I'm always surprised at the number of agents that don't seem to know about the "Safe Return" annuity with the Return of premium rider. It takes the #1 reason people don't want to buy an annuity out of the equation.

 

[Norwayguy]

I'm always surprised at the number of agents that don't seem to know about the "Safe Return" annuity with the Return of premium rider. It takes the #1 reason people don't want to buy an annuity out of the equation.

There are other carriers that build ROP in and others offer it via rider. It really is only a good feature for a couple of years because they get return of premium and leave gains behind a couple good years and the surrender value exceeds the initial premium.

 

[billberry12]

True, but on the other hand, if you put money into the annuity, and the index doesn't grow, or even goes down, you can take your money out and run with no downside risk. If it is making a little money, great. Leave it alone.

 

[LGilmore]

So Larry, at month 10. they can cash out the policy with no loss, other than gains? Really?

 

[Norwayguy]

So Larry, at month 10. they can cash out the policy with no loss, other than gains? Really?

Yes:.......................

 

[Larry Tew]

So Larry, at month 10. they can cash out the policy with no loss, other than gains? Really?

Yep. Any month. The way the math works is they calculate the surrender value afte applying the surrender charge. If the result is less than total premiums, they get total premiums refunded anyway.

 

[LGilmore]

wow. interesting.......

 

[Newby]

ForeThought used to offer one with guaranteed walk away and had a 5% bonus and lifetime income rider built in. It was pretty easy to sell.

If it didn't do what you expected, walk away with all your money.

 

[Larry Tew]

wow. interesting.......

Yeah, but it's mot magic. Obviously these products have to compensate somewhere else, and with a 100% commission chargeback, the company isn't out that much on a handful of early surrenders.