2nd to Die GUL for Wealth Transfer

[jacobtn]

Anyone else utilize these? Seems like a good way to pass funds down to bennies.

 

[mcouper]

Yes, mostly in an ILIT to cover estate taxes. Since recent tax law changes, some estate planning has slowed down - however still a great way to leverage dollars for future generations. IRR at joint life expectancy probably in 5-6 percent range (tax free).

 

[Tahoe Ray]

Yes, mostly in an ILIT to cover estate taxes. Since recent tax law changes, some estate planning has slowed down - however still a great way to leverage dollars for future generations. IRR at joint life expectancy probably in 5-6 percent range (tax free).

This is where we normally use it (per your prior point)...the IRR expectation that you use is certainly conservative (not a bad thing) but the majority of families will receive a much higher return.

67% of 70yo standard-rated couples will likely receive over 7.5% (using 2004 period life table and Lincoln's SUL)...5% is more in the 90% range.

Unused (and unneeded) RMDs are a good starting point to find funding for this strategy. A couple with a pension and social security may find that leveraging their qualified assets and creating a family legacy is an attractive option.

 

[mcouper]

Lincoln's SUL for another 2 weeks - raising GSUL rates 20-30%....they want to drive down guaranteed sales per CEO's comments on recent quarterly earnings call w analysts. Also stopping single pays over age 70 on Moneyguard....

 

[CFP83]

they want to drive down guaranteed sales per CEO's comments on recent quarterly earnings call w analysts. Also stopping single pays over age 70 on Moneyguard....

"Boys we're going to jack up rates in order to drive people into our products where lapses are much more likely....ie, you boys here on this call will be eatin a little better and pockets will be gettin fatter!" Lapses are what we want and we got to get rid of all these guaranteed promises to pay!"

Basically what was said...just in more proper English

 

[VolAgent]

"Boys we're going to jack up rates in order to drive people into our products where lapses are much more likely....ie, you boys here on this call will be eatin a little better and pockets will be gettin fatter!" Lapses are what we want and we got to get rid of all these guaranteed promises to pay!"

Basically what was said...just in more proper English

What?? You mean when you sell a product that has no cash value and only a guaranteed death benefit if you pay on time, then people pay on time? Silly.

I bet next they put obstacles to putting GULs in trusts, as trustees are probably more likely to avoid lapses to avoid liability.

 

[Tahoe Ray]

"Boys we're going to jack up rates in order to drive people into our products where lapses are much more likely....ie, you boys here on this call will be eatin a little better and pockets will be gettin fatter!" Lapses are what we want and we got to get rid of all these guaranteed promises to pay!"

Basically what was said...just in more proper English

I like your version better...a little more to the point. A lot of my business is in NY where they are pulling their SUL altogether. I have wondered for a while how their rates have remained so competitive...I guess they figured it out.

 

[mcouper]

GUL=risk on carrier, Current Assumption UL = risk on client. They don't want to manage reserve requirements, shadow accounts anymore...their new Treasury product is questionable.