AT A GLANCE:
Product: Accordia Life Lifetime Builder IUL
- An Advisor began working on an estate planning case for a couple with a unique set of needs:
- $25MM of coverage of existing single life coverage
- The existing coverage was single life on the younger, healthier female
- Household net worth in excess of $100MM
- Approximately 50% of the household net worth was tied up in the male’s business
- Despite significant cash flow, an impending period of expansion and reinvestment in the business has rendered the ongoing premium extremely problematic.
- The clients were seeking a premium finance solution for new coverage that would provide reduced cash outlay for a period of years as well as a low collateral requirement
- Accordia Life Lifetime Builder IUL
- The Lifetime Builder was quickly identified as a possible product solution.
- It was head and shoulders above all other options, offering:
- Low expenses and corresponding premium
- Attractive cash value growth
- The backstop of a 2% guaranteed crediting rate
- A high early cash value rider that was the lynchpin of the case
- The informal submission met underwriting expectations at a Premier Non-tobacco offer
- Both the medical and planning aspects of the case were discussed with the Underwriting and Advanced Markets areas at Accordia Life in advance of the formal submission.
- The design included a clear exit strategy based on paying off the loan from external sources and low ongoing premiums after the payoff.
- As a result of the excellent packaging and preliminary underwriting, the formal app was approved and issued in under 72 hours, including the review of all premium finance and trust documentation.
- $1.612MM of Target Premium placed with Accordia Life
Real Advisors. Real Cases. Real Success.