- 477
Please read the post again. He states the guy has no mortgage, no kids, not many liabilities and no need for big protection.
Which is a Better Option? Buy IUL or Buy Term+annuity?
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Please read the post again. He states the guy has no mortgage, no kids, not many liabilities and no need for big protection.
The questions asks whether the person should by term and an annuity or an IUL.
No need for big protection does not mean the person needs zero insurance. More information is needed before we can eliminate the need or the desire to purchase insurance. The person might want insurance and not even know it. We don't know the age of the person, we don't know what the future holds for them, we don't know what is really important to them.
Maybe they want to take out a policy to provide a money to their church or favorite charity when they die?
The truth is there is not enough information here to recommend the term, the annuity or an IUL. It is going to depend on their future goals, present financial status, health, future earning potential, and more.
- 477
If he wanted to leave money to a church or charity I think the OP would have mentioned it. What we do know is the guy is single, no kids and no mortgage.
I'm not sure what his present financial status and future earning potential has to do with anything since he's not married. What I do know based on the OP is that I would recommend term and that's only if he does not have enough insurance at work to cover his final expenses.
You can always covert the term if his situation changes but to drop a indexed UL will cost him for at least 10 years if not longer.
I think you are making too many assumptions.
You assume the person is single.
You assume that not having Big need for insurance means that there is no need for insurance.
You assume that he doesn't care about leaving a legacy or anything to charity.
You are assuming that if there is a need for insurance that it is only a temporary need such that term would be sufficient.
Nothing in the original post states that the person is single.
- 477
Your right about not knowing his marital status I thought it stated he was single. However based on the info provided I would recommend term if any insurance at all. I'm not assuming anything I'm going by what is in the post. You are assuming charites, future income etc etc etc.
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- 179
Oh My F@#$ing god so much bitching and no real opnions.....
He should buy the IUL. Minimize the death benefit, max overfund. When he wants to retire he'll be able to take policy loans as income. IRS code blah blah blah, doesn't have to pay taxes on the loans.
(drops mic)
Caveat- I don't know all the facts just going on what was said so far, This is just an opinion and my 2 cents, and this information is not to be used without the express permission of RICKY BOBBY INC.
He should buy the IUL. Minimize the death benefit, max overfund. When he wants to retire he'll be able to take policy loans as income. IRS code blah blah blah, doesn't have to pay taxes on the loans.
(drops mic)
Caveat- I don't know all the facts just going on what was said so far, This is just an opinion and my 2 cents, and this information is not to be used without the express permission of RICKY BOBBY INC.
- 477
Then after 20 years of loans he forgets he needs to keep the policy in force until death, the IRS has become his new best friend.
- 11,277
Which won't happen if the policy has an Overloan Protection Benefit Rider.
This is American National's life insurance rider guide so you can get some additional information on one company's version of it.
http://img.anicoweb.com/cs/groups/p...ts/webcontent/10695_riders_benefits_guide.pdf
This is American National's life insurance rider guide so you can get some additional information on one company's version of it.
http://img.anicoweb.com/cs/groups/p...ts/webcontent/10695_riders_benefits_guide.pdf
- 477
Thanks for the info!! I think the rider will help but it still has large gaps, such as the client needs to be over 75 and more troubling the policy debt must be greater than the specified amount. I really believe if people need tax free income a roth should be the first option if they qualify for one.
- 10,328
Also note that the policy must be in force for at least 16 years before it can kick in.
This is one big reason that I sell NA/Midland and not others such as Anico (which I am not a fan of at all). NA's overloan rider kicks in at age 65, not age 75. It also has a 15 year requirement vs. the 16.
But the big thing about NA is that they have a secondary feature called the "Protected Death Benefit". This is an option that guarantees the DB will never be less than $25k.
It has the same age 65 / 15 years requirement. But it does not have any of the other requirements. The only catch is that you must elect for this to kick in, it is not automatic. But when the policy gets into trouble territory they automatically send you a letter suggesting to do it.
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