Anyone heard of life policy with annuity rider? Primerica?

[shooter]

This sounds like what was called a deposit term policy.
It was big when A.L, Williams was raping WL policies.

You pay a whole life type of premium.
With all the money going for term coverage the first year.

But you have a 11-year term policy or some odd number of years.


Beginning the second year, you pay the same level premium
they hold out enough cash to pay the term premium, with the
balance going into the flexible annuity.

At the end of the term period. You get your first year
total premium back. That is why it was called deposit term.

First year cost $600 total.
2nd year $600 with it divided into two parts.
$300 for the term policy.
$300 going into an annuity.
At the end of term period, you would receive
a refund of $600 for the first year's premium.

It was either a 11 year or 15-year term.
I think it went into decreasing term at the end
of the term period.

Shooter

 

[bill3173]

In the 70s and 80s a lot of companies had annuity riders that could be attached to a life policy. They were sort of the precursor to Universal Life Plans.

American General offered an annuity rider on Whole Life policies when I first started working in 2004 (product was dropped the same year). I was captive then, but have a health insurance client that still has that policy.

The only thing that I remember about it is they could contribute monthly to the rider. The interest rate guarantee was great by today's standards, and he was very happy he did it. He tried to increase his contribution, shortly after the policy was taken out, and they told him no.

There were min and max contribution limits, but I can't remember how much.

 

[LeeInNc]

So the real question then is the annuity transferrable via a 1035 exchange?

 

[Allen Trent]

American General offered an annuity rider on Whole Life policies when I first started working in 2004 (product was dropped the same year). I was captive then, but have a health insurance client that still has that policy.

The only thing that I remember about it is they could contribute monthly to the rider. The interest rate guarantee was great by today's standards, and he was very happy he did it. He tried to increase his contribution, shortly after the policy was taken out, and they told him no.

There were min and max contribution limits, but I can't remember how much.

that is/was likely the Paid Up Additions Rider(PUAR) that is still offered on the best WL products to allow overfunding cases. Basically, it is the same as the Dividend buying PUAR each year, but the rider is for optional purchases within the min/max you mention. It is essentially the client not obligating themselves to a larger base policy buy adding "single Premium" paid up attachments to the policy each time they add extra money or have a dividend credited

 

[bill3173]

that is/was likely the Paid Up Additions Rider(PUAR) that is still offered on the best WL products to allow overfunding cases. Basically, it is the same as the Dividend buying PUAR each year, but the rider is for optional purchases within the min/max you mention. It is essentially the client not obligating themselves to a larger base policy buy adding "single Premium" paid up attachments to the policy each time they add extra money or have a dividend credited

I can see why you thought that, but this wasn't a participating policy.