Minnesota Life IUL'S

[Golfnut2112]

Has anyone ever used their IUL's? I am starting to use IUL's and recieved a quote on their Omega product which seems really good. I am in the senior market using life insurance as a wealth transfer tool. Any ideas on what companies are good in that market (except North American) would be appreciated. I am looking for one that can take multiple payments from annuites and RMD'S.

 

[aclaro]

Just make sure you realize that the default on their Omega policy is to pay the death benefit in installments instead if lump sum.

 

[scottstreet]

Outside of NA/Midland- Penn Mutual is quality but why stray from the clear winner?

 

[Golfnut2112]

Just make sure you realize that the default on their Omega policy is to pay the death benefit in installments instead if lump sum.

Yes, can you take 50% as a lump sum and the balance over 10 years? I'm not sure how many people would want it set up like that.

 

[DHK]

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

Our own Brandon Roberts (BNTRS) stated:

Accept that Minnesota's own language states that electing this irrevocable settlement option "might" reduce COI. It does not guarantee that a reduction in COI will take place.

In other words, client commits, but company does not. While I'm sure Minnesota doesn't intend mischievousness here, it sure would be nice to be able to illustrate a scenario where the assumed COI reduction does not occur (which is entirely possible as per their own contractual language).

It's also worth mentioning that there is some debate over whether or not a premium payment to a policy with no COI expense might violate the GPT since zero COI would infer zero required premium to keep the policy inforce an a premium payment would trigger a test for compliance which the contract would then fail. While I totally understand that in practice we'd assume no premium payments since we're planning income from the policy, but this is a serious disclosure that often goes unmentioned. Minnesota itself has told me they don't offer compliance testing that far in advance, but would check for compliance on in force business. In my opinion, too late.

 

[Golfnut2112]

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

Our own Brandon Roberts (BNTRS) stated:

You are right, that does not sound good!! Have you sold any of their other products?

Thanks

 

[DHK]

No I haven't, so I can't give you any positive or negative input other than that.

 

[pfg1]

A CFP friend of mine sells alot of Minn Life. All I know is he likes them alot, but I don't know why. Probably doesn't help you much.

 

[YourFamilyBank]

IMO one of the top IUL's out there. Both Eclipse line and Omega.

Yes, the Omega has 50% Upfront DB and can do 10 installments for remainder but remember if you do that, you will get more TOTAL death benefit than if took it all upfront. The decision is clients because the income is higher you can pull from Omega. It is designed as an income product. Sometimes it makes a difference, sometimes it does not. I always have both run and see the difference if showing income.

For example, we just placed one and the income shown was $54,000ish on Eclipse and $55,400ish on Omega. They decided that wasn't enough difference so took Eclipse.

They also have rolled out Indexed Loans which allows you to lock in 5% fixed rate with full 100% participation in the index. This is a nice feature although they have always had the option of a policy owner to switch from Variable Loan to Fixed without paying off the loan so they have always had protection.

Drive us crazy with tough underwriting but we write a ton w/ them.

 

[EAJoe]

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.