Any brokers using this type of product for wealth accumulation?
I am not sure of which companies offer this, anyone have any guesses?
Thank you,
I am not sure of which companies offer this, anyone have any guesses?
Thank you,
Indexed Survivor UL?
- Thread starter Justin Bilyj
- Start date
- 847
Not sure. Typically a Survivor policy isn't used to accumulate cash but rather more focused on the DB to estate issues.
- 10,331
An SIUL can be an excellent accumulation vehicle. It often has a lower COI since you are dealing with 2 lives vs. 1.
However, the admin and other expenses can be a bit higher.
For a well off couple that will need a DB for kids/benes once they are gone, but they dont need a DB for the other spouse; it is a great option.
A couple with lots of Qualified Assets is a good option for something like this. The QFs will go directly to the surviving spouse, so they will most likely not have any liquidity issues after the death of the 1st spouse. But, when the 2nd spouse dies, most of the assets will get tied up in Probate, and after that they will trigger large tax bills (and possibly higher tax brackets) for the kids/benes. This is where the SIUL comes in to pay the FE & Taxes. The fact that it builds up a tax-free bucket of emergency funds is just gravy.
NA/Midland has a good SIUL.
They also offer a nice Chronic Illness Rider for free on the policy, however the Rider is only valid for the 2nd to die. So for LTC needs you can use the CV for 1st spouse, and the DB for the 2nd spouse. (to what extent obviously depends on the contribution levels of the SIUL & the LTC needs)
But its a great product for well off couples who are convinced on "self insuring" for LTC.
However, the admin and other expenses can be a bit higher.
For a well off couple that will need a DB for kids/benes once they are gone, but they dont need a DB for the other spouse; it is a great option.
A couple with lots of Qualified Assets is a good option for something like this. The QFs will go directly to the surviving spouse, so they will most likely not have any liquidity issues after the death of the 1st spouse. But, when the 2nd spouse dies, most of the assets will get tied up in Probate, and after that they will trigger large tax bills (and possibly higher tax brackets) for the kids/benes. This is where the SIUL comes in to pay the FE & Taxes. The fact that it builds up a tax-free bucket of emergency funds is just gravy.
NA/Midland has a good SIUL.
They also offer a nice Chronic Illness Rider for free on the policy, however the Rider is only valid for the 2nd to die. So for LTC needs you can use the CV for 1st spouse, and the DB for the 2nd spouse. (to what extent obviously depends on the contribution levels of the SIUL & the LTC needs)
But its a great product for well off couples who are convinced on "self insuring" for LTC.
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The accumulation play used to be a bigger market than it is today. A lot of SIUL's make for crappy accumulation vehicles. Penn Mutual is actually still pretty good at this.
On the whole life side, MassMutual is probably the best option (also a very thin market regarding availability)
On the whole life side, MassMutual is probably the best option (also a very thin market regarding availability)
I am not a big believer in the IUL for survivorship plans, usually too much costs involved to get good accumulation, since an average age of issue is 60 or more.
A GUL makes more sense, usually 30-50% less cost in premium. TransACE (Transamerica) has a survivorship GUL that fits this bill.
Leave the accumulation to an Index CD or Index Annuity.
A GUL makes more sense, usually 30-50% less cost in premium. TransACE (Transamerica) has a survivorship GUL that fits this bill.
Leave the accumulation to an Index CD or Index Annuity.
- Thread starter
- #6
Leave the acc to an index cd or indexed annuity? But you will find way higher caps on an IUL it seems?
I thought Survivorship plans have lower coi, so are you saying they are poor acc vehicles because of admin costs?
It appears your statements are at odds with scagnt...
Brandon, why are they no longer good accumulation vehicles? What changed about them?
Thanks for confirmation on mass' product, I had been looking at that.
- 8,707
Just realize caps are only 1 part of the equation. Caps can be higher on a life policy over an annuity because the carrier makes money on the coi where as with the annuity the only place to make money is the spread on interest.
Also if I put 10k into an IUL and the same 10k into an index annuity you will have signifigant cost associated with the life policy in the early years so your higher cap not mean as much.
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