Discover the Benefits of the Waiver of Surrender Charge Option

  • Originally published May 18, 2010 , last updated May 24, 2016

Do you have a client with a large asset transfer? Or how about someone seeking early cash value or possibly a rated client wanting a better rate class? If so, you can help close the sale by offering the Waiver of Surrender Charge Option.

So what is the Waiver of Surrender Charge Option? It enables a client to eliminate surrender charges from his or her policy unless the policy is surrendered as a 1035 exchange to another company. In addition to waiving surrender charges, the option offers a table shave feature that will shave a table 4 to a standard rate class. You'll want to discuss this option early with your clients since it's only available at issue and it must be designated on the application.

The Waiver of Surrender Charge Option can be a great help in marketing a product to clients with asset transfers, 1035 exchanges, or rated cases. It's available on Custom GrowthCV universal life insurance along with Rapid Builder IUL® indexed universal life insurance.

Let's take a look at a Rapid Builder IUL example using a 1035 exchange of $50,000 on a male, age 45 at standard non-tobacco table 4.

Waiver of Surrender Charge Option Illustration

As you can see, the Waiver of Surrender Charge Option offers several key advantages. Look at the guaranteed and non-guaranteed cash surrender value available to the client in year one! Another highlight is the non-guaranteed cash value accumulation available at retirement of over $180,000.

This illustration shows a guaranteed death benefit during your clients' working years and there's guaranteed surrender value available for an exit strategy. Of course don't forget the added benefit of the Chronic Illness Accelerated Benefit Rider. It all makes for a very compelling case for a 1035 exchange on a client rated a table 4.

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