AIG’s new IUL with “UNLOCKED SURRENDER CHARGES” means that all premiums above “benchmark” (ie: approximately the target premium) are accessible beginning in Yr 3 without surrender penalties.

SCENARIO: Client has a $100K 1035…….but also doesn’t like the idea of “$0’s” in the Surrender Value column.

SOLUTION:
– Sell a $1.1M DB with $100K 1035.
– Beginning in Yr 3………….Owner can withdraw $100K and reduce DB to $1M……..maintaining the same premium stream (look at page 2) !

PS – Table C to Standard is now available on Value+ IUL up to age 70.

More details:

IUL Top 5 Things You Need to Know (2)