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TMCNet:  Unique Minnesota Life Policy Lets Owner Decide How to Pay Death Benefits

[February 20, 2013]

Unique Minnesota Life Policy Lets Owner Decide How to Pay Death Benefits

ST. PAUL, Minn. --(Business Wire)--

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," said Ben 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 include Minnesota Life Insurance Company and Securian Life Insurance Company, a New York admitted insurer.

AMZ 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.

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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 operated.

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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