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Your clients protect their home with homeowners insurance, flood insurance, wind damage insurance, and possibly
earthquake insurance, but what happens if the death, disability, or unemployment of a breadwinner occurs? Will
there be sufficient funds to pay off the home or make house payments? If they make it to retirement, will they have
sufficient income to pay their mortgage?
Every homeowner should be concerned that if something happens to them their family will have the means to be
able to stay in the family home; for the kids to be able to stay in the neighborhood they are familiar with. Upon
the death of the breadwinner, no one wants to make these difficult decisions when they are in the middle of the
grieving process.
Policy can be funded up to the maximum limits allowed under TAMRA (Tax And Miscellaneous Revenue Act of 1988) to avoid becoming a Modified Endowment Contract (MEC) whereby all distributions other than due to death of the insured would be considered immediately taxable as ordinary income to the extent of earnings. 2) All riders may not be available in all states. In California, Chronic is not available on term policies or permanent policies with term riders. Chronic and Critical are not available for ages 65 and over. In New York, Critical is not available. The benefit is subject to an administrative fee of up to $500 and an actuarial discount that is primarily dependent on the insured’s life expectancy at the time of the election.
All concepts, strategies and products discussed in this literature are general and may not be suitable for you. Please consult your advisors to determine which strategy is right for your specific circumstances. Neither American National nor its agents provide legal or tax advice. Clients should contact their attorney or tax advisor for their specific situation. Policy Form Series: SGUL18; SGUL18(NY); ABR14-CT; ABR14-CH; ABR14-TM (ND & SD Form Series ABR22-CT; ABR22-CH; and ABR22-TM);ABR14-TM(NY); ABR14-CH(NY). (Forms may vary by state).
American National Insurance Company, headquartered in Galveston, Texas is licensed to conduct business in all states except New York. Business is conducted in New York by American
National Life Insurance Company of New York, headquartered in Glenmont, New York. Each company has financial
responsibility for only the products and services it issues.
Author: Cameron Greenlaw
Broker