MEC Limit on HECV Illustration

[efranco86]

HECV runs out of steam later on in the policy with regards to dividends, high cash early, low cash later on. I couldn't cite the actual mechanism, just remember what was told to me when asked about these early on..

Page 2 of the tabular values are attached. Seems to do ok cash wise, although, I have no basis for comparison?

 

[jboussea]

Sorry about the delayed response. As a new member only my new threads get posted immediately, my first few replies had to be approved by the mods. But see above for the details on my issue. I'm reasonably certain based on what was said here that I need another agent, if the agent doesn't know the MEC limit how is he going to design a policy that snuggles that limit... Now how to extricate myself from the current agent and go to a new one...I emailed the sales manager and basically said I needed a specialist who has issued HECV policies that are funded near the MEC limit.

After seeing this thread .. I played around with the Mass Mutual software and I saw break even point around 5 years. If I were you I would reach out to SCAGNT83... who posted in this thread. He's the resident expert when it comes to these policies around here and being that he's independent like most of us here.. he might suggest a better option. Though I don't know of any HECV competitors in the WL market. 100% liquidity IUL might be an option as well if you're not married to WL.

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Page 2 of the tabular values are attached. Seems to do ok cash wise, although, I have no basis for comparison?

is there a reason you need the early cash value? . ... WL insurance policies are typically slower to to grow than HECV .. but there is always a tradeoff and that's what Justin was alluding to .. a regular Par WL will have higher cash value on the back end..

an example would be if this is for Retirement Planning .. you would want the policy that has more cash value in year 30 or so...

if you're a real estate developer and you need to have the cash just in case an opportunity presents itself (but you want higher return than a bank account) .. you'd go with HECV ..

There are other reasons but these are just examples

 

[efranco86]

I have more than enough vol in my regular business, want to avoid IUL and stay with WL from MassMutual or the like.

Yes, I am awaiting scagnt83's diagnosis. aclaro was also kind enough to say he'd take a look.

I am looking at HECV's because I need the optionality of cash access right off the bat as I sometimes have short-term high-return investment opportunities. Like a RE developer.

 

[jboussea]

I have more than enough vol in my regular business, want to avoid IUL and stay with WL from MassMutual or the like.

Yes, I am awaiting scagnt83's diagnosis. aclaro was also kind enough to say he'd take a look.

I am looking at HECV's because I need the optionality of cash access right off the bat as I sometimes have short-term high-return investment opportunities. Like a RE developer.

Sounds like you're on the right track .. you sound like a perfect case for HECV...
it's refreshing to see to an educated consumer who understands WL ..

 

[scagnt83]

So to rephrase...my point is that there are times when you can not max out the 7 pay premium due to violation of the CVAT later on in the policy.

That shouldnt be an issue if designed correctly. Unless they forced a reduction in the DB for some reason.

Using Term Riders or the correct PUA Riders will allow it.

 

[pfg1]

I have more than enough vol in my regular business, want to avoid IUL and stay with WL from MassMutual or the like.

Yes, I am awaiting scagnt83's diagnosis. aclaro was also kind enough to say he'd take a look.

I am looking at HECV's because I need the optionality of cash access right off the bat as I sometimes have short-term high-return investment opportunities. Like a RE developer.

You are on the right track for sure.
There are several ways to accomplish what you want... either with a HECV policy, or a specifically designed max funded WL policy. The HECV will give a little more cash available up front (prob 10%), but the max funded will pass it later on. I personally like Penn for this, using max funded design. They don't offer a HECV like Mass.

 

[efranco86]

I'm a NY native but now live in Puerto Rico.

The Guardian is not available here. I don't think Northwestern is either.

Mass Mutual definitely is. As is Ohio National.

Anyone licensed to sell WL policies in PR (I know there are some of you FL based agents roaming about who have a PR license) and who can work with me on HECV or 10-pay with paid up addition riders to make a policy with high cash value, feel free to PM me!