Term Life W/Annuity Rider

[SamIam]

I have a client looking for a 10 year level renewable term life insurance policy with a tx-deferred annuity rider. I never heard of this does it exist.

 

[souldeux]

I've heard of that before, but only in a group sense. The attached PDF details the only plan I know of in the individual market that comes close, but it's a WL instead of a term. I think RNA has something similar, too.

 

[JFBAgent]

AI have a client looking for a 10 year level renewable term life insurance policy with a tx-deferred annuity rider. I have no idea why, does it exist?

LOL...now I've heard it all. It sounds like this guy talked to some joker at one time about term. In order to beat out the competition, he invented the "annuity rider." When your term period expires, all of the premiums you paid (plus interest) are returned to you in the form of an annuity.

In reality, it's probably traditional Universal Life using the assumed values projection for a 15, 20, 30 year etc. cash value. At that point the policy gets 1035'd to an annuity.

 

[SamIam]

Who is RNA?

 

[Larry Tew]

AI have a client looking for a 10 year level renewable term life insurance policy with a tx-deferred annuity rider. I have no idea why, does it exist?

Sure it exists. It's called Whole Life. It's better than having term and an annuity (rider or not) because the WL grows tax deferred, can be accessed thru withdrawals and loans tax free for other investment and opportunities, and in most states it enjoys some degree of protection from lawsuits and creditors.

 

[SamIam]

I understand that Larry, but this client is a difficult person but sends me a lot of referrals. He had this product 6 years ago and wants it again and can't remember who it was with. Thats why I am asking.

 

[Larry Tew]

That's fine, Sam. Is it possible your client had a WL or UL and the previous agent "explained" it to make it sound like term and investment because he couldn't or didn't want to properly explain a permanent policy? I've never heard of what he's asking for.

 

[GreenSky]

This product used to be written by American Amicable. It was called Horizon Life.

A 20 year, 7 pay term. ROP at end of 20 years. Had a side fund account that although it was not tax deferred, it would grow at a guaranteed 4% (formerly 6%).

Not a bad product for accumulation. I actually know one agent who has this product for himself.

Rick

 

[arnguy]

Who is RNA?

Royal Neighbors of America.

 

[SamIam]

Deposit Term is what he is referring to, does anybody know of any carriers, I found two. I would like to give him as many options as possible.