Will any annuity co. Accept a 1035 from contract under 2 years old?

[rc26]

Have a client who's needs have changed dramatically due to unexpected death of younger husband. Contract is just over 1 year , due to mva the surrender is not an issue but will any company you can think of accept a transfer from a contract under 2 years old?

 

[scagnt83]

IF the surrender charge is non existent because of MVAs, then most any carrier will take it... assuming the rest of the case passes suitability.

 

[DHK]

You'll want to include a cover letter explaining the life event, how it's in the client's best interest, no surrender charges, and why the new contract is suitable at this time. You'd want that for your own files anyway.

 

[Allen Trent]

Have a client who's needs have changed dramatically due to unexpected death of younger husband. Contract is just over 1 year , due to mva the surrender is not an issue but will any company you can think of accept a transfer from a contract under 2 years old?

So, is this new proposed annuity better than the 2 year old annuity? What is in it for the client to make the move compared to what they have?

 

[rc26]

So, is this new proposed annuity better than the 2 year old annuity? What is in it for the client to make the move compared to what they have?

The idea would be no income rider to income rider due to losing spouses income unexpectedly .. Caps/par rates are similar since they are so recent

 

[scagnt83]

The idea would be no income rider to income rider due to losing spouses income unexpectedly .. Caps/par rates are similar since they are so recent

And MVAs eliminate all Surrender Charges? If you are using a Bonus to make up for Surrender Charges it might be a tough sell in just year two, especially since the products have similar rates. The receiving carrier is likely to ask about Annuitization and Income options on the current product.... has that been explored yet and a comparison been reviewed with the client? They could likely ask for it and the client to sign off on it.

 

[DHK]

And MVAs eliminate all Surrender Charges? If you are using a Bonus to make up for Surrender Charges it might be a tough sell in just year two, especially since the products have similar rates.

I know scagnt83 knows this, but MVAs are separate from surrender charges (which are usually waived at death - which I believe is the case here, but not specifically said other than "losing spouses income unexpectedly").

If there were surrender charges remaining on the contract, I know you can't move it in California - even if the client signed off on it. And California is the land of arresting annuity agents, so they mean it.

 

[scagnt83]

I know scagnt83 knows this, but MVAs are separate from surrender charges (which are usually waived at death - which I believe is the case here, but not specifically said other than "losing spouses income unexpectedly").
.

I took the situation to mean that the surviving spouse is the owner of the contract in question. The income lost from the deceased spouse is different than the annuity.

If the annuity was owned by the deceased spouse, then MVAs would not be relevant to the discussion. Since MVAs and Surrender Charges were mentioned by the OP, it seems the Annuity is still in-force, and owned by the surviving spouse.

 

[DHK]

He wasn't the most clear or specific, so it's easy to misinterpret. I still might have it wrong, so who knows.

 

[rc26]

I took the situation to mean that the surviving spouse is the owner of the contract in question. The income lost from the deceased spouse is different than the annuity.

If the annuity was owned by the deceased spouse, then MVAs would not be relevant to the discussion. Since MVAs and Surrender Charges were mentioned by the OP, it seems the Annuity is still in-force, and owned by the surviving spouse.

Scagnt83 has it right. Will look at annuitization options.