10 Pay..only 7 Payments ?

[Deepsea]

I have a 10 pay life policy.
I know it makes the most sense to fund for a full 10 years, but what would happen if I only pay for 7 years ?

Since I would pay 7 payments it would not MEC.
Does it make any sense to stop after the 7th payment if it was putting a strain on my budget ?

 

[senior-advisor-indiana]

How many of these threads are you going to start?

 

[Deepsea]

How many of these threads are you going to start?

Just looking if anyone had additional insight.

I always like to have a backup plan.

I also figure I could pretty much pay the 10th payment mostly from accumulated dividends.
The first two payments...not a problem.

It's just the 7 payments in the middle lol
But I think I have it figured out. Although I will tell you in 10 years or so if everything is working out.

 

[goillini52]

You had started the same thread on 12-14-13.


12-14-2013, 08:52 PM #1 Deepsea
Super Genius

Join Date: Jan 2013
Posts:65
State:

Paying 7 Payments of a 10 Pay and Stopping Go to Top I am an agent for a career shop.

If I purchased a 10 pay policy and turned the policy into a paid up policy after the 7th payment--- am I right in assuming then that the policy won't MEC ?

Is it a crazy idea to save the 8th, 9th and 10th premiums....if a big reason I am doing the plan is cash value accumulation and not sure if I will want to commit the additional 3 premium payments if I didn't want to.

 

[Gooner]

You had started the same thread on 12-14-13.


12-14-2013, 08:52 PM #1 Deepsea
Super Genius

Join Date: Jan 2013
Posts:65
State:

Paying 7 Payments of a 10 Pay and Stopping Go to Top I am an agent for a career shop.

If I purchased a 10 pay policy and turned the policy into a paid up policy after the 7th payment--- am I right in assuming then that the policy won't MEC ?

Is it a crazy idea to save the 8th, 9th and 10th premiums....if a big reason I am doing the plan is cash value accumulation and not sure if I will want to commit the additional 3 premium payments if I didn't want to.

Damn all you forum junkies and your fancy quoting past post stuff...how's someone supposed to be redundant, redundant around here?

 

[goillini52]

Damn all you forum junkies and your fancy quoting past post stuff...how's someone supposed to be redundant, redundant around here?

I just remembered, remembered seeing it before, before.

 

[Deepsea]

Just seeing if someone actually had some input or insight....

Sorry shoot me

 

[scagnt83]

Just seeing if someone actually had some input or insight....

Sorry shoot me

Is it a true 10 pay or are you using premiums to offset at year 10?

 

[rousemark]

Just seeing if someone actually had some input or insight....

Sorry shoot me

I he does, you won't have to worry about making any additional payments. Problem solved!

 

[Deepsea]

True 10 pay.

I was thinking of using dividends from the first 9 years to pay for 10th year if necessary

And while this would slightly slow down the accumulation rate of paid up additions in the cash value....just wondering if anyone would have general feedback on this strategy.