Midland National Strategic Accumulator illustration

[Allen Trent]

I just ran those parameters on Midland. Policy lapses at age 87.

Midland does have slightly lower internal costs than NA. Mainly because there is no IMO involved to take their cut.

Thank you greatly. Something the spreadsheet received by the client made it last until 95. I am guessing it was something like using a variable loan. Using variable loan & only about 500k face, I could get 88k to last to age 95 with 2 other carriers

Take care

 

[Jay1958]

When I ran the North American illustration I used a variable loan. By setting the loan interest rate to 1.00 percent lower than the maximum illustrated rate, this made the illustration look the strongest. If I were to increase the loan interest rate to 6.00 percent (the maximum) that would reduce the number of years one could take loans. If I reduce the loan interest rate to below 5.46 percent (3.50 percent is the minimum) that will reduce the remaining cash surrender value.

As mentioned by scagnt83 in his post, the lower internal policy costs of the Midland National policy (which includes the multiplier rate of 15 percent in all years) carries the policy to age 87 versus the North American policy which lapses at the end of the 46th policy year (that is, age 84).

Notice how on the Insmark illustration, the cash values of the policy begin to rise after age 83 and this is supporting the loan to age 95. On the North American illustration, this does not occur.

Scagnt83, since you have access to the Midland illustration software, did the illustration values of your illustration mimic the Insmark illustration values up to age 67 (that is, before loans commence)? Also, what happens to the cash values in your illustration at or after age 83? I assume they continue to decrease which means they are not mimicking what appears on the Insmark illustration.

Allen, perhaps contacting Tom Martin at North American will be of help. He is the Senior Life Product & Competition Analyst. Tom's email address is [email protected] and the last phone number I saw listed for him is 1-800-800-3656, ext. 36430.

 

[scagnt83]

Thank you greatly. Something the spreadsheet received by the client made it last until 95. I am guessing it was something like using a variable loan. Using variable loan & only about 500k face, I could get 88k to last to age 95 with 2 other carriers

Take care

No problem.

And nope. I used variable with the lowest allowable rate of 3.5%