LIRP/ SLIRP - Life Insurance Retirement Plan

  • LIRP
    • Life Insurance Retirement Plan
    • Life Insurance Retirement Planning
    • Life Insurance in Retirement Planning
  • 199xs - Metlife - legal case - Nurses
  • LC - Walker v Life Insurance Company of the Southwest  ---  [BonkNote]
  • 1987 - SOA - Single Premium Life and Annuity Products, Society of Actuaries - 22p
  • 1988 0325 - GOV (Senate) - Tax Treatment of Single-Premium Life Insurance, (CSPAN) Single Premium Life Insurance, Max Baucus, (D-MT)  ---  [BonkNote]
  • 2003 - SOA - Variable Life—Product and Distribution Issues, Society of Actuaries - 28p
  • 2010 - AP - Life Insurance Retirement Plans For High Income Individuals - [LIRP], by Johnny Fryar, Jr. and Meyer Drucker - 10p
  • 2018 /2019 - SOA - Why Indexed Universal Life Income Streams Need to Be Managed
    • 2018 10 - SOA - Why Indexed Universal Life Income Streams Need to Be Managed—Part 1, By Ben H Wolzenski and John S. McSwaney - p28-31 - soa.org/4934ca/globalassets/assets/library/newsletters/product-development-news/2018/october/pro-2018-iss111.pdf
      • WHAT’S THIS ABOUT AND A QUICK BO TTOM LINE
        • Wolzenski: John, over the past decade working with producers, you’ve observed that most Indexed Universal Life (IUL) new premium comes from sales that illustrate policy loans or withdrawals, either for retirement income or to repay premium financing.
    • 2019 - SOA - Why Indexed Universal Life Income Streams Need to Be Managed—Part 2, By Ben H Wolzenski and John S. McSwaney - 4p
  • Michael WINTERFIELD: I will take one shot at the change in the marketing of the product. I think the majority of individuals who are buying single premium life insurance are interested at some point in time in exercising the distribution right -- and having some potential to get them tax-free is very important. I think we are looking at loan rates which will increase very much over time. Most of us haven't seen particularly high loan rates in the first 2-3 years. Many people who are buying are looking forward to taking loans out after 5-10 years, 15 years, or whenever they reach a retirement age.
    • With that in mind, I think the distribution side is tightened up. I would see many people not purchasing single premium life insurance, but probably in many of these cases switching over to an SPDA, which would still be perceived as having some advantage. I would agree with comments that Paul had made earlier in that area.
  • Paul LEFEVRE: We feel maybe about 20% of our single premium whole life customers are buying the product with the express idea that they are going to take annual loan distributions or take advantage of the so-called "take your income out tax-free-type approach." The question that alludes to what you are saying is, in addition to those people, how many people find the product attractive because they know they can get at their money? I don't know what that is.

1987 - SOA - Single Premium Life and Annuity Products, Society of Actuaries - 22p

  • (p105) - One whole life insurance brochure used by our agents in 1975, entitled the "Four in One Plan", does not mention insurance on either cover. - <WishList>
    • The back cover lists it benefits as, "retirement income, immediate estate, emergencies opportunities and self-completing it totally disabled.
    • Life insurance is only mentioned two places in the brochure, and odds are, if it could legally have been eliminated from the discussion, it would have been.
    • The words "death benefit" appear nowhere.
  • Advertising life insurance as a savings plan is nothing new. 

--  Gordon G. Oakes, Monarch, Chairman of the Board and President

1988 0325 - GOV (Senate) - Tax Treatment of Single-Premium Life Insurance, (CSPAN) Single Premium Life Insurance, Max Baucus, (D-MT)  ---  [BonkNote]

  • (p18) - GAO - Richard J. Hillman
      • But oftentimes what regulators are telling us is, that these insurance products that are being sold to military members are being not sold as an insurance product, but are being sold as an investment. 
  • (p20) - Wayne Allard (R-CO)
    • Same types of stuff we run into in the private sector.
    • We ran into them in the 1970’s particularly, if I recall, although they just had them as IRA accounts at that time, and they are deceptive.
      • The salesman persisted that this was not life insurance, but it was there in black and white if you read the fine print.
    • I can understand how they can get misled on that kind of stuff, and I think that it is a shame. 

2005 1117 - GOV (Senate) - A Review of the GAO Report on the Sale of Financial Products to Military Personnel, Richard Shelby (R-AL)  ---  [BonkNote]

  • On the regulatory front, we have 2001 CSO coming into play.
    • That will help UL writers and variable life writers.
    • It reduces the cost of reserves when we provide guarantees to clients.
    • However, the impact on term and UL is probably moderate, probably low.
    • On the variable life side, a number of variable life products out there today do have no-lapse guarantees.
    • The 2001 table will help that.
    • The impact of the new mortality table on life-insurance-retirement-planning (LIRP) sales, cash accumulation sales, is that it will lower the amount of money that you can get into contracts, but I think that still makes it a relatively attractive sale long-term.

-- Thomas P. Kalmbach, assistant vice president of individual life product financial analysis with The Hartford Life Insurance Companies.

⇒  Tom is currently responsible for pricing individual life business, performing experience studies, managing reinsurance relationships and performing miscellaneous financial analysis.

⇒Tom currently serves as the illustration actuary for the individual life line of business for Hartford Life. Tom is an FSA and a member of the American Academy of Actuaries (MAAA). 

2003 - SOA - Variable Life—Product and Distribution Issues, Society of Actuaries - 28p

  • While life insurance is not a retirement strategy, it can help provide the opportunity for supplemental financial support in retirement.  (p23-24)

2018 - NAIFA - AdvisorToday - Bridging the Gap: An understanding of the potential uses for permanent life insurance can help clients see it as a tool to help fill gaps in their portfolio, By Jason Wellmann - 53p

  • * Paying more than the required minimum premium can help build cash value

2021 - Prudential - Cash Value: Life Insurance in Retirement Planning - 2p

01 Jan 1950, Sun Press of Atlantic City (Atlantic City, New Jersey) Newspapers.com