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Reply to North American Rapid Builder As an "investment."     
Old 08-16-2016, 12:50 PM   #1
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ltcadviser on North American Rapid Builder As an "investment."
 
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North American Rapid Builder As an "investment." North American Rapid Builder As an "investment."
I was asked about the North American Rapid Builder IUL survivorship policy by a couple in their mid to later 60s as a single premium investment to leave $ to their beneficiaries. I admit I have never been attracted to any indexed insurance products, however I would be open to understanding the pros/cons of this policy compared to other options?

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Old 08-16-2016, 01:21 PM   #2
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
Originally Posted by ltcadviser View Post
I was asked about the North American Rapid Builder IUL survivorship policy by a couple in their mid to later 60s as a single premium investment to leave $ to their beneficiaries. I admit I have never been attracted to any indexed insurance products, however I would be open to understanding the pros/cons of this policy compared to other options?
Pros:

Gives an enhanced DB. Can turn $100k into $200k.

Allows them to keep access to the money if need be. Access be via Loans. They have a "wash" loan option that is zero load on the policy.

For a properly designed single premium policy, it will be Guaranteed for around 15-20 years. Even at very low assumptions (such as Indexed based returns at 4% for the life of the contract), it will be guaranteed.


Cons:
Not a whole lot if they plan to gift this to loved ones. Using an indexed product means there is not a lifetime guarantee.... but that is also assuming the stock market returns 0% every single year.... so it is not a realistic assumption.

You might could find a product other than NA that gives a higher DB, but it would be at a cost of the CV return.


A negative that is specific to this product/carrier, is that UW gets very tight with NA on older clients. LFG is MUCH more friendly with the 60+ crowd.



Single Premium Life Insurance is one of the most efficient ways possible to pass money on to heirs. Especially if you still want access to the funds in case of an emergency.

And when doing a lump sum, most all of the fears about index returns vanish... because it will not lapse even down to very low index return levels.
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Last edited by scagnt83; 08-16-2016 at 01:35 PM.
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Old 08-17-2016, 09:49 AM   #3
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Lewis_FL on North American Rapid Builder As an "investment."
 
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
or consider Nationwide's no-lapse SUL with the LTC rider. $100k gets 'em around $2500 a month each for LTC if they need it or $250k for the beneficiaries if they don't. No worries if it doesn't perform.
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Old 08-18-2016, 09:56 AM   #4
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North American Rapid Builder As an "investment."
Originally Posted by Lewis_FL View Post
or consider Nationwide's no-lapse SUL with the LTC rider. $100k gets 'em around $2500 a month each for LTC if they need it or $250k for the beneficiaries if they don't. No worries if it doesn't perform.
Is this approved in Florida yet?
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Old 08-18-2016, 11:50 AM   #5
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
Originally Posted by Lewis_FL View Post
or consider Nationwide's no-lapse SUL with the LTC rider. $100k gets 'em around $2500 a month each for LTC if they need it or $250k for the beneficiaries if they don't. No worries if it doesn't perform.
From what I understand, the benefit at that level is practically useless.
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Old 08-18-2016, 12:03 PM   #6
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
what is the commission rate generally speaking on single premium?
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Old 08-18-2016, 12:36 PM   #7
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Lewis_FL on North American Rapid Builder As an "investment."
 
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
no not FL yet. "maybe" this year...

----------

Originally Posted by todder View Post
what is the commission rate generally speaking on single premium?
same as level premium but with a couple % on the excess
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Old 08-19-2016, 08:43 AM   #8
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
Originally Posted by AboutThatLife View Post
From what I understand, the benefit at that level is practically useless.
Define useless.
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Old 08-19-2016, 12:22 PM   #9
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North American Rapid Builder As an "investment." Re: North American Rapid Builder As an "investment."
Originally Posted by scagnt83 View Post
Pros:

Gives an enhanced DB. Can turn $100k into $200k.

Allows them to keep access to the money if need be. Access be via Loans. They have a "wash" loan option that is zero load on the policy.

For a properly designed single premium policy, it will be Guaranteed for around 15-20 years. Even at very low assumptions (such as Indexed based returns at 4% for the life of the contract), it will be guaranteed.


Cons:
Not a whole lot if they plan to gift this to loved ones. Using an indexed product means there is not a lifetime guarantee.... but that is also assuming the stock market returns 0% every single year.... so it is not a realistic assumption.

You might could find a product other than NA that gives a higher DB, but it would be at a cost of the CV return.


A negative that is specific to this product/carrier, is that UW gets very tight with NA on older clients. LFG is MUCH more friendly with the 60+ crowd.



Single Premium Life Insurance is one of the most efficient ways possible to pass money on to heirs. Especially if you still want access to the funds in case of an emergency.

And when doing a lump sum, most all of the fears about index returns vanish... because it will not lapse even down to very low index return levels.

If you assume 4% for a 60 yr old it would lapse after 20 years if properly designed..?

That doesn't sound so attractive.
------------------------------------
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Old 08-21-2016, 09:42 AM   #10
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North American Rapid Builder As an "investment."
Originally Posted by jboussea View Post

If you assume 4% for a 60 yr old it would lapse after 20 years if properly designed..?

That doesn't sound so attractive.
I never said that.
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Reply to North American Rapid Builder As an "investment." 

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