AboutWillard R. Brumbaugh, LUTCF, CSFP Expertise I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.
Experience For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969.
Organizations I belong to: National Association of Insurance and Financial Advisors - California
and the Inland Empire Estate Planning Council.
I hold the professional designation of Life Underwriters Training Council Fellow.
Question With Aviva's financial patent, that allows you to borrow from aviva's fund instead of your own in retirement, allowing your account to continue to grow at a hopeful (according to passed market performance) better rate than your borrowing at the moddy's bond rate, is that the best place to get the EIUL? and also since it has that patent, they said they can offer me tax free income i cant outlive, is that true? and also is there a better product for me to grow my money?
Answer Dear Eric,
Before I answer this question, I want to disclose that I am appointed with Aviva.
1. Is it the best place to get an EIUL? I believe so. This may be only true in those states that allow the No Lapse Guarantee.
2. Can they offer me a tax free income? No, they can't. They can offer you an untaxed income, but this can become taxable if the policy is terminated before you die. See my article in the April '09 issue of InsuranceNewsNet magazine.
3. Is there a better product to grow my money? Possibly. And it might also be with Aviva. When it comes to projecting growth based on stock market history, you cannot be sure of the conclusions. Since there is only a 2% guarantee with this product, an extended down or flat market could destroy any chance of a good retirement income from this contract.
Aviva also has the traditional UL that is not indexed to the market. This might out-perform the EIUL. Remember, one of the things that can adversely affect the stock market is rising interest rates. These same rising interest rates can enhance the performance of the traditonal ULs, while at the same time reducing the yields in the EIUL.
Willard R. Brumbaugh, LUTCF
CA License 0374776
www.willardbrumbaugh.com
(888) 792-2379
