Background
Parents are frugal, risk-averse, first-generation immigrants (with US citizenship) living in south Florida and they own a small business without any other employees. They also don’t have health insurance.
Thanks to the current virus situation in Florida, I wanted to see how they were doing in terms of retirement and if they could move back to their home country — which has great, affordable medical care and a much lower CoL — which is when I discovered what I wrote in the title and that they have no other savings. To say I was horrified is an understatement, but there’s nothing to do but move forward and control the damage. I had Parents give me the login info for their New York Life accounts so I could see what was up.
I’m hoping you kind folks can help me determine if my plan is optimal, especially with Parents being so close to retirement age. I’m ignoring their assets and liabilities in this post because we’ve gotten the ball rolling on those already and I’d like to focus on what we’re not familiar with, which is all these crazy policies.
New York Life Policies
In total, Parents have 13 policies: 6 life insurance, 4 annuities, and 3 “Premier II” policies
| # | Type | Insured | Cash Value | Face Value | Tax Type | Start Year | Yearly Premium | Notes |
|---|---|---|---|---|---|---|---|---|
| 1 | Variable Universal Life | Mom | $119,700 | $250,000 | 1998 | $3,600 | ||
| 2 | Whole Life Insurance | Mom | $51,400 | $250,000 | 2006 | $4,400 | ||
| 3 | Whole Life Insurance | Dad | $89,300 | $250,000 | 1998 | $3,700 | ||
| 4 | Modified Premium Whole Life | Dad | $83,600 | $250,000 | 2000 | $4,000 | ||
| 5 | Whole Life Insurance | Brother | $41,000 | $500,000 | 2006 | $3,500 | ||
| 6 | Whole Life Insurance | Me | $34,1200 | $500,000 | 2006 | $3,000 | ||
| 7 | Flexible Premium Variable Annuity | Mom | $20,700 | SEP IRA | 2000 | $10,000 | ||
| 8 | Guaranteed Future Income Annuity | Mom | N/A | Rollover IRA | 2011 | Total: $145,400 | Pays $18,900 yearly starting 2029, premium was rolled over from Policy # 7 | |
| 9 | Premier Plus II | Mom | $184,600 | Non-qualified | 2016 | Total: $137,000 | ||
| 10 | Premier II | Mom | $22,400 | Roth IRA | 2017 | Total: $21,500 | ||
| 11 | Flexible Premium Variable Annuity | Dad | $34,200 | SEP IRA | 2000 | $10,000 | ||
| 12 | Guaranteed Future Income Annuity | Dad | N/A | Transfer IRA | 2011 | Total: $145,200 | Pays $15,500 starting 2025, premium was rolled over from Policy #11 | |
| 13 | Premier II | Dad | $49,500 | Roth IRA | 2017 | Total: $45,300 |
Discussion so far
- Difference in premium between whole life and term life = done
- The agent who sold them all of these policies (it’s been the same lady for 20+ yea
Hey guys and gals I’m a new life agent and I’m looking for a good lead vendor to supplement me while I’m working my warm market any and all advice is appreciated thank you
My mom has been in retirement age for a few years now (Dad passed away a few years before that), and I haven’t thought to be too involved in her finances... until now.
Is it normal to have multiple (6 of them) life insurance policies and to keep rolling over annuities? It’s preventing my mom from withdrawing as much as she wants. Additionally the financial advisor is kinda sketch - it’s a father/son firm allegedly ‘old family friends’ but he has been pretty abrasive and unhelpful when we try to talk to him.
I should note that my mom refuses to get rid of him and I have no idea why. We presented her with evidence and counter examples of how a financial advisor should act but she is for some reason attached to this guy I’ve never met.
Is there somewhere he can be reported or is it just time to lawyer up? Am in Texas btw
I'm a financial planning student that got a job as a financial services representative at an IMO. Does this count as experience? I was hoping to get my CFP after passing the exam right out of college. Although, I got the job for other reasons too.
Hi guys, I'm trying to help my wife sort out some life insurance stuff she signed up for a few years back through work and then forgot about.
Looking at the statement, it says things like: "Fixed Indexed Annuity" "Products issued by: Life Insurance Company of the Southwest" and obviously these products are things we would want to get rid of. There's a balance of a few thousand.
But it also says "Plan: 403b" - so, does that mean it's a retirement account? Because if it is, then we would need to do a direct transfer rollover to an IRA rather than a withdrawal.
Trying to gather answers here rather than call the life insurance company, who will probably say anything to keep the account open.
Product #2: also issued by a life insurance company, the statement says it's a "tax sheltered annuity" that has a few hundred bucks in it. Doesn't mention anything about a 403b or other retirement type account. I'm guessing this one we could just cash out?
It first happened before the 2008 crash, but I read about it in Money Stuff sometime in the last year or so. It might have been in the "Things happen" section. I could search through all my emails, but that would be tedious. Tips for searching are also appreciated.
The story: Before the financial crisis, insurance companies were offering very attractive life insurance benefits in order to attract customers. One such benefit was that if the investment went up, the beneficiary would benefit from that, but if the investment went down, the beneficiary was still guaranteed to get back at least the initial contribution. State law did not require insurable interest, so a guy took out a bunch of policies on a bunch of dying people, and made some bullish bets and some bearish bets, guaranteeing a profit. He eventually got charged with forging signatures or something, but the core of his scheme was perfectly legal.
I have looked and looked and looked online and cannot find out how to initiate a rollover of a NY Life annuity to my IRA on ETrade. I've called half a dozen times but the wait times are huge and I've gotten nowhere. Can y'all point me to the right area of the website to request this?
Thanks!
I'm planning on getting life insurance and an annuity for myself. I've shopped around and found out about this company - National Life Group. They have quite attractive life insurance which combines with an annuity. As they say, it has "Lifetime Income Benefit" which is almost like an annuity. So I have some questions.
What attracts people to purchase an annuity?
Why people hate those insurance brokers so badly?
What are the factors to determine which insurance company is trusworthy?
Did anyone hear about National Life Group and their product?
Thank you for your reply. And please excuse my bad English. :)
Hey all, Next week I will be taking my life insurance test. I am mainly taking it to sell annuities and focus on 401k rollovers to fixed indexed policies. Though I already have clients lined up and being shared by my boss, I would still like to get myself a business card, and participate in some forms of marketing. With this being said, what would my title be? “Financial Planner and Insurance Agent”? Would like some advice and insight. Thanks all.
Also, I play on taking my series 6 and 7 after finishing my MBA if this matters.
