As an alternative to low yielding CD or Indexed Annuity have you thought of using an Indexed UL with a minimal death benefit? The policy is taxed as a MEC, but that is no worse than a CD or Indexed Annuity, plus the death benefit is still tax free. Using the early cash value rider, your client preserves their liquidity and / if they were going to die with the investment in place why not have their beneficiaries receive the benefit tax free.

 

We have illustrated several companies using a 60 year old male and a projected rate of 6% even though the indexes have performed much higher than this and have caps significantly higher, 11%-14%.

 

Do you have a client who is looking to park some cash? This may be a great alternative for them.