celiothrkn
Expert
- 28
A family friend recently informed me that he was sold a Transamerica FFIUL policy from a WFG rep about 1 year ago, and I did a bit of educating on why the FFIUL is a disaster (i.e. high COIs in later years). However for this type of policy, the surrender charge doesn't mirror the cash value until year 15, if we were to do a 1035 exchange.
In this scenario, would it be better for the client to cut his losses, forfeit the premiums paid for the first year, and start a fresh new IUL policy with someone better like North American/Midland? Or is it better to ride out the next decade and a half to do a 1035 at a time when the surrender charges mirror the accumulated cash value? Please explain your rationale.
In this scenario, would it be better for the client to cut his losses, forfeit the premiums paid for the first year, and start a fresh new IUL policy with someone better like North American/Midland? Or is it better to ride out the next decade and a half to do a 1035 at a time when the surrender charges mirror the accumulated cash value? Please explain your rationale.