Big Win for Me this Week

[mwpuck01]

Just wanted to post about a win I had this week. Had a client who was 80, had a annuity with my company for awhile and didn't want the annuity anymore. We rolled the money over into a single premium WL and during the application process we ask about his income and he tells us he has a 401k and gets RMD's every year and doesn't really need the money, just wants to leave it as inheritance. We talk about the tax consequences of that and end up selling him a 1 million dollar life insurance policy.

Reminds me to always make sure to ask questions and ask the right questions. Hope everyone else is having a good week.

 

[DHK]

Good job!

If you'd like to learn how to do more like this by design, rather than by coincidence, I'd check out this link:

http://www.insuranceproshop.com/FactFinding/

 

[mwpuck01]

Thanks, we just started using new advysis fact finding software which is great.

 

[pfg1]

Nice work! What company/product did you put him in on the SPWL? At 80 there isn't much leverage, but more than an annuity.

Was the $1m the spwl? or was it two polices? Either way, nice job...and his family will certainly be better off

 

[Tothetop]

How were you able to roll an annuity into a life contract?

Great question. I must be missing something.

 

[marindependent]

im confused as well

 

[DHK]

It wouldn't be a "rollover" or "direct transfer". It would be a complete taxable liquidation of the account for the current tax-year, and the after-tax proceeds would purchase the SPWL.

No RMD's and it can all transfer to beneficiaries income tax-free.

 

[mwpuck01]

no 1035 the annuity he had with us to the SPL policy. I work with western southern, yes i am still a captive agent, but he came into the office saying he didn't want his annuity anymore and what options did he have. This was the best option we had and then we put him in a guaranteed UL for 1m which was a little less than his RMD this year for the AP. It was the cheapest non term product we had for him.

 

[walthamny]

I dont have all the numbers here, but instead of cashing the annuity and paying taxes on the gains, another method would have been to annuitize the annuity and take the payments to fund the UL policy. Under some circumstances, the tax optimization is much better for the client. Instead of paying taxes all at once, you could have spread the tax burden.

While your solution is pretty good, at age 80 you have to worry about beneficiaries coming after you.

If the annuity was bought before 8/14/1982 I would not cash it at all. I would just take principal withdrawals and fund the life insurance.

 

[mwpuck01]

Well we are not using the annuity to pay for the UL we are using his 401k RMD every year to pay for the UL. The annuity paid for the SPL. I made it seem like to did this all at once but we worked with him and his family to make sure this is what he wanted. We did the SPL back in august and worked with our UW to make sure we could get this done and this week wrote the UL.