Life Insurance 74 year old male

[LostDollar]

Also, have you checked out the Sagicor Wealthcare? If I recall, it had a more limited set of knock out questions. [EXTERNAL LINK] - WealthCare Indexed Single Premium Universal Life - Sagicor Life USA

Not sure if this packet is current, but page 4 has their knockout questions: https://levelfourinsurance.com/carrier/Sagicor/WealthCare_Accelewriting Guide.pdf

I have not been able to get a current illustration for a minimum premium Sagicor Wealthcare. (the standard "too small of a purchase for an agent issue.)

I have been looking at one I was given 3 years ago.

It includes this language:

Surrender charges will apply to withdrawals or surrenders during the first
fifteen policy years.

That makes it sound like it is similar to an FIA with a 15 year surrender charge period which some agents in posts here have suggested is unlikely to be a wise purchase.

Now that I have a little more background, it certainly diminishes my interest in the product, even with twilight's enthusiasm for it in posts 10-15 years ago.

 

[Allen Trent]

I have not been able to get a current illustration for a minimum premium Sagicor Wealthcare. (the standard "too small of a purchase for an agent issue.)

I have been looking at one I was given 3 years ago.

It includes this language:



That makes it sound like it is similar to an FIA with a 15 year surrender charge period which some agents in posts here have suggested is unlikely to be a wise purchase.

Now that I have a little more background, it certainly diminishes my interest in the product, even with twilight's enthusiasm for it in posts 10-15 years ago.

I dont know much about Sagicor or their products, but I know you likely wont want to consider Life policies if you believe you will need to surrender cash value to live on. Same is true if considering buying an annuity if you believe there is chance you will need to live on the money & the product doesnt offer much annual surrender charge free withdrawals. Some annuity products offer 10% free withdrawal each year, some offer no free withdrawal & others offer only the annual interest or RMD as free withdrawal.....plus some offer surrender charge free withdrawal of X% each year if you are in a nursing home.

I honestly prefer surrender charges because it only charges people if they take "too much" out. Compare that to load fees with some products like Mutual funds. would I rather pay 3-5% up front as a load fee & never make interest on that money lost to load fees or would I prefer to only pay a back end Load fee(surrender charge) if I take more than the annual free withdrawal amount.

On the Sagicor life, I bet it is a product designed for "Leave On" money assuming the consumer has other liquid assets in banks, retirement accounts, etc. Plus, you would want to ask if the surrender charge only applies is the entire policy is surrendered or on partial distributions of cash value/loans

 

[scagnt83]

I agree with Allen. Dont do a SI single premium life policy if you want the funds to live off of.

But if you just want them as emergency funds, it can be a good solution.

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Surrender charges in an IUL are very different than an Annuity.

On an IUL, they determine the total amount available for withdrawal. They do not subtract from the actual withdrawal itself.

Example:
Annuity with an 8% Surrender Charge. And 10% Free Withdrawal feature. $100k account value for easy math.

That means any Withdrawal over $10k (10%), will be reduced by the 8% Surrender Charge.

So a $20k Withdrawal will get the first $10k in full. And the next $10k will see an 8% penalty. For a net of $19,200.


But an IUL with a $100k value and 8% surrender charge is very different.

That means your liquid access is reduced by 8%. Giving you $92,000 in liquidity available.

So a $20k withdrawal, would be a $20k withdrawal. Free and clear.

 

[Allen Trent]

But an IUL with a $100k value and 8% surrender charge is very different.

That means your liquid access is reduced by 8%. Giving you $92,000 in liquidity available.

So a $20k withdrawal, would be a $20k withdrawal. Free and clear.

but dont some UL products incur a surrender charge because of the face reduction that occurs on a Withdrawal taken on a Level death benefit product? Basically a claw back of costs incurred by carrier to issue the larger policy initially & have it be reduced via a witdrawal? IE: rep got paid a commission on the initial larger face amount & now it is lowered due to the face reduction caused by the withdrawal.

honestly asking as I know I have seen such UL designs over the years, but maybe current product design doesnt do that.

 

[scagnt83]

but dont some UL products incur a surrender charge because of the face reduction that occurs on a Withdrawal taken on a Level death benefit product? Basically a claw back of costs incurred by carrier to issue the larger policy initially & have it be reduced via a witdrawal? IE: rep got paid a commission on the initial larger face amount & now it is lowered due to the face reduction caused by the withdrawal.

honestly asking as I know I have seen such UL designs over the years, but maybe current product design doesnt do that.

If it does, they can take a wash loan instead. But good point.