What do I mean? There are some products out there that have some unique characteristics. They allow for large single premiums, a period of time for the policy to season, and then the ability to accomplish the following:

• A withdrawal of every nickel the client has paid in premium
• A reduction in face value
• A reduced, fully guaranteed death benefit for life
• All for the cost of time value of money (and maybe a little bit of tax)!

So who's doing this? Good question. CD owners, that's who. Why? Rates are terrible. Their other positions have been hammered (thus the desire for the CD the own, right?), and they are tired of the abuse the market has heaped on them. This strategy allows them to deploy their capital somewhere other than the market, and generate a great IRR on a guaranteed basis, all for the cost of the lost "opportunity" of owning a CD for ten years.

How's it work? Here's the scenario:

• Husband and wife
• Both age 60, both standard or better
• $200K in CD assets
• Single pay in to an SGUL (Survivorship Guaranteed UL) with a $500K face amount
• Wait ten years
• Withdraw $200K (Did I mention that there was this plus more in GUARANTEED cash value at year 10?)
• Reduce the face amount by the amount of the withdrawal

The result of this is a fully guaranteed policy in the amount of $300K with no further premiums due. At the ten year mark, you can then re-deploy that original $200K back in to a CD, under the mattress, into the market, you name it, it's yours. There is minimal tax due based on the fact that the contract was a MEC and therefore has LIFO tax treatment. Consider that your cost, along with the opportunity cost referenced above, of owning a guaranteed $300K life insurance policy.

So what is the IRR on the death benefit? Try this on for size - just under 5% at year 30!

Now there is something to be thankful for! I hope you and your family enjoyed a wonderful Thanksgiving. Let's go close the year strong!