Honeymoon Rider and Term Blend Success

MassMutual has made its dividend announcement! To ride that wave, I wanted to share two of the top ideas we have going at MMSD: 

1. Honeymoon Rider
   • The first is a new marketing piece we have for the use of business-owned cases utilizing our Honeymoon rider for high early cash value.
     • Cash value performance of product is not affected by addition of rider like you typically see with high early cash value riders.
     • Balance sheet neutral sale perfect for key person, split dollar and other retention/protection strategies
     • Small-case COLI feel with the more consistent and predictable outcomes whole life can generate.
   • The second and third attachment share a sample case for an attorney group with 4 partners each contributing $1MM per year.
2. Retention Cases, High Net Worth (this idea can be used in smaller protection cases as well) – The last two attachments illustrate how a term blend saved a case from being a 15MM retention on GUL (still a great case at 306K of premium) to a 30MM whole life retention case for 626K of base premium and 18K of term blend premium. Cash value added so much more versatility to the planning inside the trust amongst the portfolio of insurance the insureds had already obtained and looked to obtain in the future. The client was first sold on the 4.75% illustrated dividend and liked what they saw – the 6.00% dividend proposal blew them away! (See the dividend Announcement later today to see how things look going forward in the near term for this client).
   • Showing this term blend and the current dividend scale minus 125 bps went a long way towards making the agent and customer feel confident this plan could be relied upon.
   • Going forward the question on 15MM UL Guard retention cases will be: If the client could get 30MM would there be an appetite? If so, here is a way to make it happen!