Are cash values subject to Medicare spend down?

[Allen Trent]

If only they would let someone help them plan it out.

Most consumers, especially middle class, are very resistant to hiring a financial planner.

They are too concerned about the cents they are spending to realize the dollars they could be saving.

agree, but at a minimum the tax preparer could. Many of these individuals still pay the tax preparer several hundred dollars a year to file a tax return they dont have to file (only those that owe taxes have to file). Some have to file to get back the witholding they had on their small pension or IRA checks, but they could stop the witholding & not have to file to get the refund. Even those that didnt file were able to get stimulus checks during Covid. Some file state returns to get some of the property tax credits

 

[Allen Trent]

11 years.

See, it takes 11 years for the illustration you had to even have more cash value than the deposit. this means a MEC wouldnt have any taxable gain on a 1099 if you took a loan/surrender/etc during the 1st 11 years, so zero impact to your tax return. even after year 11, I bet the amount of gain (cash value-minus initial deposit) is miniscule. A distribution from the policy after year 11 would only report that small gain amount on a 1099, not your entire distribution. MEC seems to be completely a non-issue in your situation based on what you have shared & the policy you were considering.

PS-- 11 years seems like a long, long time for the cash value to get back to your initial deposit, but that is the case with some SPWL--especially the small ones with minimal underwriting, etc

 

[wln417]

Single Premium Life Insurance certainly has the ability to have 2x-3x premium in the DB. It might not be immediate.

At what age can someone get 2-3 times a single premium for DB? Will you name a carrier that has this? Thanks.

 

[LostDollar]

Single Premium Life Insurance certainly has the ability to have 2x-3x premium in the DB. It might not be immediate.

At what age can someone get 2-3 times a single premium for DB? Will you name a carrier that has this? Thanks.

Caveat, NOT an agent. (and I don't have the proper technical terms for the following comment.)

My guess would be very healthy 40's or younger (with whatever processes an agent uses to get the very best rates). And some kind of policy with dividends and a process that allows the dividends to be reinvested in additional life insurance. Then maybe by age 70+ the DB will have grown to the figures discussed. Based on my experiences with smaller policy quotes, I would also guess that will be more difficult today than it would have been in Jan 2020 and before. But I don't know-we'll see what he says.

 

[Allen Trent]

At what age can someone get 2-3 times a single premium for DB? Will you name a carrier that has this? Thanks.

with No lapse UL or No lapse IUL, you could get:

age 45- 6-7 X
age 55- 4-5X
age 65- 2.5-3X
age 75- 1.5-2X
age 80- .6-.9

SPWL--depending on the design of the product whether it is more designed for pure base protection or good CV growth & dividends

age 45-55 could be 200-300%
age 70 maybe closer to 75-100%
age 85 maybe closer to 20-30%

Here is 85 year old showing a jump of 28% in face over deposit initially with 75% of the money in the PUAR fund for accessibility if needed & even projected break even back to cash value just past year 2 in projected & guaranteed columns

 

[Tahoe Ray]

At what age can someone get 2-3 times a single premium for DB? Will you name a carrier that has this? Thanks.

Last ones I wrote were Sagicor on 3 20 somethings. The average leverage was over 10x.

A 70yo could easily see 80-100%, several carriers.

 

[scagnt83]

At what age can someone get 2-3 times a single premium for DB? Will you name a carrier that has this? Thanks.

Most any fully underwritten GUL on the market; AIG, LFG, MoO, Penn, Pru, Protective... take your pick.

 

[LostDollar]

Most any fully underwritten GUL on the market; AIG, LFG, MoO, Penn, Pru, Protective... take your pick.

So this thread started out in the Senior Forum asking about single premium life insurance policies.

I don't know what GUL is.

Is it a single premium type life insurance policy that will return 2x-3x premium for seniors, say those on Medicare, 65 and older?

 

[Allen Trent]

So this thread started out in the Senior Forum asking about single premium life insurance policies.

I don't know what GUL is.

Is it a single premium type life insurance policy that will return 2x-3x premium for seniors, say those on Medicare, 65 and older?

Universal Life (Guaranteed UL, Index UL) with a secondary no-lapse guarantee can also be funded with a Single premium to provide a guaranteed death benefit.

So, this is still consistent with the OP whether it is a single deposit UL versions or single premium WL.

 

[LostDollar]

Universal Life (Guaranteed UL, Index UL) with a secondary no-lapse guarantee can also be funded with a Single premium to provide a guaranteed death benefit.

So, this is still consistent with the OP whether it is a single deposit UL versions or single premium WL.

Thanks