Of the carriers I surveyed, only Penn Mutual and Old Mutual did not require a surrender charge on that portion of the premium.įor example, as in prior comparisons: male age 44, over funding an Indexed UL with $25,000 in premium for 20 years in order to generate tax free retirment income in the form of policy loans. With Indexed Universal Life one strategy is to over fund the policy above target to build additional cash value. Mind you target is a guidepost for keeping the policy in force, how the policy performs may require more or less premium. Target premium is a premium designed maintain a permanent policy for life. Penn Mutual is the best: no surrender charges after the 9th year, also no surrender charges in excess of target premium. Not surprisingly, Lincoln and Penn Mutual were among those most favorable. For the carriers I compared, it takes between 10 to 20 years for those charges to completely go away. Surrender charges decrease on a declining schedule. It’s always good to know the rules for getting money back, so I compared surrender charges for indexed universal life (IUL) carriers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |