Single Premium Par Whole Life

[shooter]

Hey everyone hope this virus hasn't gotten anyone down.

Simple question for more the knowledgeable.
I could ask an IMO, but there are not always correct and I don't want
the constant emails about everything they market.
Plus most Mutuals will license direct.

I have never written any par products, so this my be a little naive
on my part.
Are there any A+ mutual s that have offer a single premium product?
Maybe they don't because you can use PUA to create one?

Just thinking,( dangerous I know), that it might improve a persons
income by moving, less than one percent savings or cd's to cashvalue
and receive a dividend.
Since it is tax free.
Not really looking at small policies, those above 50,000 dump in.


Your correct they are not guaranteed.
I understand that.

Not really into fraternal s either.
It's ok if you are,there is nothing wrong with it, just hasn't been my bag.

Just a question for inquiring minds.
Thanks,
Shooter

 

[Tahoe Ray]

SBLI has one but I think they're only "A".

 

[FIA_Guy]

Single premium policies are Modified Endowment Contracts and are not going to have the same tax benefits as a whole life contract. A better strategy would be to structure the policy as a 10-pay, and move 10% of the assets each year as premium. Almost any big mutual other than Mass can do that for you. I believe Mass's current product cannot be designed as anything less than a 12-pay.

 

[Golfnut2112]

Lafayette life has one. If you are looking to use the life insurance as a wealth transfer tool and NOT expecting to take any loans or withdrawals a lump sum premium is the way to go. I just read you post again you can definitely do a lump sum into a policy and take the yearly dividend as income. It will be taxable but the death benefit remains tax free. If you spread out the payments to avoid a MEC the policy definitely will not perform as well.

 

[scagnt83]

Penn's WL can be designed as a Single Premium policy.

 

[bmarsh]

So Most companies have a premium deposit account that will pay about 3% interest, so you dump the $50k into that, then it will pay the WL policy for 10years, or 5 years whatever you choose to make sure that it's not a MEC.

Sample Attached so you get the idea

 

[Golfnut2112]

Penn's WL can be designed as a Single Premium policy.

I think the new Penn policy has a 5 year minimum premium payment period. You may be able to request a reduced paid up after 1 year.

 

[scagnt83]

I think the new Penn policy has a 5 year minimum premium payment period. You may be able to request a reduced paid up after 1 year.

The old ones did too. Utilize the Premium Offset option to design a single pay with Penn.

 

[pfg1]

The old ones did too. Utilize the Premium Offset option to design a single pay with Penn.

Yeah you can do that, but it doesn't perform as well as a true single premium. Assuming MEC is not an issue. I wish they had a true SPWL.

One America (A+) has one. So does MTL (A).

 

[scagnt83]

Yeah you can do that, but it doesn't perform as well as a true single premium. Assuming MEC is not an issue. I wish they had a true SPWL.

One America (A+) has one. So does MTL (A).

When Ive compared it to true single premium products the performance is extremely competitive. jmo