Typically, when an insured dies, the beneficiaries named in the policy
receive 100 percent of the death benefit all at once. They have the
choice to receive the money in a lump sum or they can choose other
options. However, it's always the beneficiaries' choice.
Minnesota Life's new indexed universal life product, Omega Builder IUL,
offered exclusively through AMZ Financial, includes the Income
Protection Agreement (IPA). The IPA incorporates a feature that allows
policy owners to arrange for the death benefit to be paid as an
irrevocable settlement option in a combination of installment payments
and lump sum payouts.
"The IPA offers advantages to the policy owner and the beneficiaries,"
Roth national sales vice president, Minnesota Life. "The policy
owner has an opportunity to generate more cash value while he or she is
alive. It also allows the policy owner to establish a stream of income
for the beneficiaries."
"We all have heard stories about people falling into large sums of
money, only to see it go up in smoke. There is even a reality TV show
based on this premise," said Jason Konopik, CFO, AMZ Financial. "The
reality is that a predictable stream of income, rather than a lump sum,
helps beneficiaries maintain a consistent lifesyle."
The flexibility provided by the IPA, which must be selected when the
policy is issued, allows the policy owner to create an income stream for
beneficiaries that will grow at a fixed rate. Also, stretching the
payment of a portion of the death benefit in installments over a period
of years potentially lowers the cost of insurance for the policy owner,
creating the possibility that the cash value will grow faster. The
tax-advantaged cash value in the policy can be used for any number of
life events, including retirement income, charitable giving, college
tuition or the down payment on a home.
Since 1880, Securian
Financial Group and its affiliates have provided financial security
for individuals and businesses in the form of insurance, investments and
retirement plans. Now one of the nation's largest financial services
providers, it is the holding company parent of a group of companies that
Life Insurance Company and Securian
Life Insurance Company, a New York admitted insurer.
Financial Insurance Services works with many life insurers to assist
with product development. As a wholesaler and distributor, it represents
more than 100 companies that provide life insurance, annuities,
long-term care coverage and Medicare supplement plans.
DOFU - 02-2013A00556-0213
Insurance products described here are underwritten and issued by
Minnesota Life Insurance Company. AMZ Financial Insurance Services, LLC
serves as a distributor of these products and is independently owned and
Policy loans and withdrawals may create an adverse tax result in the
event of a lapse or policy surrender, and will reduce both the cash
value and death benefit.
Please keep in mind that the primary reason to purchase a life insurance
product is the death benefit.
Life insurance products contain fees, such as mortality and expense
charges, and may contain restrictions, such as surrender periods. One
can lose money in this product.
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