Universal Life cash value
- Thread starter Sunny2014
- Start date
- 10,328
What is the most you can pay on it per month?
What is the current interest rate? Is this an UL or IUL? If its an IUL, what is the current Cap or index strategy?
How long have you had the policy?
- 2,262
how old is your granddaughter? Add to it if she is under 18 or 21 and then give it to her to keep since it should have a guaranteed insurability rider. Or see what you can purchase as a paid up policy for the Cash Value
Lloyds of Lubbock
Guru
- 714
Without seeing an inforce illustration run at different funding levels, it is hard to voice an opinion.
What I would suggest if coming up with a funding level you are comfortable with and have an illustration run.
This would give you a better idea of if it is something you want to continue with.
What I would suggest if coming up with a funding level you are comfortable with and have an illustration run.
This would give you a better idea of if it is something you want to continue with.
- 11,277
I wonder if you can 'back-fill' the policy?
Suppose you could contribute $3,000 a year, but you've only been doing $120 ($10 a month) for 10 years. You could dump in $30,000 - $1,200 = $28,800 and max-fund the existing policy.
Just find out what the max amount is without making it a MEC (Modified Endowment Contract) and keep the ongoing funding maximized at a comfortable level.
Suppose you could contribute $3,000 a year, but you've only been doing $120 ($10 a month) for 10 years. You could dump in $30,000 - $1,200 = $28,800 and max-fund the existing policy.
Just find out what the max amount is without making it a MEC (Modified Endowment Contract) and keep the ongoing funding maximized at a comfortable level.
- 10,328
If they chose CVAT they could possibly do something similar to this. But GPT, by design, limits premium and would not allow it. (literally not allow it and refund the premium, not talking about MEC)
- 4,575
Are you sure? I believe after 7 years in force (or after material change)many TAMRA TEFRA DEFRA premium tests allow a lot more premium to be put in even if level death benefit, substantially more if increasing even under the GPT test
- 10,328
I dont think its a dollar for dollar type of catchup for all of the Guideline Premium missed. Also, sometimes GPT will not allow premiums to be paid for a certain number of years after a large payment.
But you would just have to play with the inforce illustrations to see whats allowed. Also, not sure how the new regs effect all that at this point either.
Lloyds of Lubbock
Guru
- 714
New regs do not effect inforce policies
- 4,575
I believe for the 7 pay test, it is actually a dollar for dollar as it wouldnt fail the test unless it violated the "net level" premium since issue/change. if my 7 pay is $2,000 & I only pay $500 the 1st 5 years, I could actually pay a total 9,500 in year 6 & still be under the MEC status. After 7 years, I believe even more room opens up, but would still be subject to the cumulative test since issue/change.
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