penn mutual accumulation builder flex iul

The policy will continue on for many years, even if she pays no more premiums, as it draws down the cash value. She shouldn't feel any urgency to pay the December 1 premium of $1,500. Welcome to the Forum! I'm glad that you reached out with your friend's question.įirst of all, what is your friend inclined to do? Does she have doubts about whether she should keep the policy? That's an important question to answer. It should list exactly what rate they are using and give you a few different rate examples. So be mindful of high illustrated rates depending who you talk to. In that example there was like zero chance the policy could perform as what that agent thought should be illustrated given the caps and participation rates. A while back we had an agent post here how he would have illustrated the policy in question at a much higher rate than what the insurance company gave the client.

The most meaningful thing is probably the illustrated cost of insurance in particular if you no longer qualify for a good rate. Companies frequently keep those low once they start to adjust them. That’s a tad of an exaggeration but illustrations for iUL are more difficult to extrapolate from since not only do you not know how the index will perform but there is no telling if they will lower the caps or participation rates. With IUL they can illustrate at whatever performance rate they want. With WL it’s based on current performance both cost of insurance and the investment piece. Keep in mind there is a big difference with an illustration for WL and an IUL Then, just invest it in a taxable account, focusing on equities, which would mean she'd need to adjust her tax-advantaged accounts to get back to her desired asset allocation. If she does cancel it, she'll pay tax at her marginal rate on the ~$17,000. is one place that's recommended for quotes. Has she been overpaying the premiums? I'm confused how a $6,000 annual premium can have a cost basis of $127,000 after 10 years.Ĭhances are she should cancel it, but only after she's gotten replacement, level term insurance. She should ask for an inforce illustration. She has $1 million in other term life, and is in 24% federal, 3% state tax bracket. Indexed loan available amount $138,020.13 Traditional loan available amount $137,772.55 Overloan protection benefit rider $602,406.00ġ year S&P global BMI indexed account $69,262.12ġ year S&P 500 indexed account $75,415.14 Insured female age 44 AT TIME OF ISSUE, CURRENTLY 53Īnnual premium $6,000.00 billed quarterly I believe the main question is whether to continue with the policy or to cash out.

Please review and comment on this Penn Mutual “Accumulation Builder Choice Indexed Universal Life” policy.

Penn mutual accumulation builder flex iul