Minnesota Life IUL'S

[scagnt83]

We do a lot with their Eclipse line. The Performance Death Benefit Guarantee Agreement and the Long Term Care Agreement are great features when a client is looking more for protection, but still maintaining the possibility of cash accumulation/income.

What is the LTC agreement? How does it work/look?

 

[EAJoe]

What is the LTC agreement? How does it work/look?

The client can choose an amount up to the total death benefit for the LTC agreement, and then choose whether they want to accelerate up to 2% or up to 4% per month for LTC needs.

After a doctor has certified that they can't perform 2/6 ADLs, they can get up to their 2% or 4% every month after a 90 day elimination period, without receipts or reimbursement, tax free up to the IRS maximum ($330 per day). It can even be used to pay a family member for care. Any LTC benefit the client receives reduces the death benefit dollar for dollar.

 

[scagnt83]

The client can choose an amount up to the total death benefit for the LTC agreement, and then choose whether they want to accelerate up to 2% or up to 4% per month for LTC needs.

After a doctor has certified that they can't perform 2/6 ADLs, they can get up to their 2% or 4% every month after a 90 day elimination period, without receipts or reimbursement, tax free up to the IRS maximum ($330 per day). It can even be used to pay a family member for care. Any LTC benefit the client receives reduces the death benefit dollar for dollar.

Is it a 7702-b rider?

If not, is it free or do they charge extra?

 

[aclaro]

7702b
Yes, there is an additional charge and underwriting.


Choice of a 2 or 4 percent maximum monthly benefit.
Guaranteed residual death benefit, up to $25,000.
Monthly indemnity payments.
Informal care.

 

[scagnt83]

Good to know. Thanks.

 

[pfg1]

Interesting on the LTC....

 

[ktmorgan]

DHK,

VERY interesting thread on Producers Web. Thank you for pointing it out. 2 questions for you if you don't mind:

1) you said that you had trouble finding in IUL with a "Disability waiver of Stipulated Premiums." Have you since found one that has that feature?

2) then again on that thread you mentioned that you had found an Index UL with a 10yr surrender and cheap COI with which you are now comfortable to offer now. I would love to know which one that is. So I could read the contract myself so I can just learn what the heck is going on in the fine print.

I'm currently contracted with NA and Allianz and Lincoln Financial and I want to make sure that I am doing no harm to my customers.

Please PM me if for some reason you'd rather not say public.

Much obliged from a 3 yr newbie.

Warmest Regards,
KTMorgan

According to the comments on this thread: ProducersWeb - Life - Indexed universal life: So zero

Our own Brandon Roberts (BNTRS) stated:

 

[DHK]

I won't say that the COI is "cheap". The COI "is what it is" - regardless of company or product. Watch Guy Baker's "The Box" for a better explanation regarding the costs of insurance in permanent policies.

The other features are important to me... and keep in mind that California has a rather "unique" insurance marketplace.

The policy I've chosen to market is American National's Signature IUL:

Independent Marketing Group of American National

I only wish a Chronic and Critical Illness riders were available in California too. Most companies don't have those riders here, except AIG and TransAmerica (I think).

----------

Oh, and you can contact them directly to get contracted, if you want.

Others here could give you a contract for ANICO I'm sure.

 

[aclaro]

American National huh? I haven't looked much at them because I haven't seen them benchmark well for income. The cash value seems somewhat competitive but the income just isn't there.

 

[scottstreet]

DHK puts a huge value on the disability waiver paying excess premium. This is an advisor choice and not a bad one as it makes the plan self completing. If however, you value other aspects of IUL's see Brett Anderson's videos (he is the publisher of IUL digest). You will inevitably come away with the view that NA/Midland is the premier choice. He ranks 24 categories I think and lists all IUL carriers.