PRO’s:

1. Annual Locked In Cash Account Value;
2. Lump Sum allocation typically $50,000 up to $1,000,000;
3. No 1099s or IRS Reporting (withdrawals may be taxable);
4. High earning potential (Cap Rates up to 17%);
5. Popular Market Indices (DOW, S&P500, NASDAQ, Russell, etc.);
6. Popular Index strategies( point-pt., spread, monthly sum, etc.);
7. Limited Market Upside with No Market Risk to principal;
8. Minimum Guarantees up to 3% (can offset fees and costs);
9. Average Interest potential based on back testing up to 8%+;
10. Third Party Rated for Safety (A+ or Better Available);
11. Tax Deferred Growth;
12. Tax Free Wealth Transfer Death Benefit for Heirs;
13. Heirs receive Tax Free up to 4X the initial premium or more;
14. Advanced IMEC strategies can transfer tax-qualified wealth Tax-Free to heirs;
15. Tax Free Long Term Care Options Available;
16. Tax Free Home Health Care Options Available;
17. Tax Free Chronic Care Options Available;
18. Cash Access - High Liquidity is possible
19. Potential for No Surrender Charges;
20. Built on a Life Insurance Chassis;
21. Designed with the lowest insurance costs for IRS Guidelines;
22. Lower commissions as a result of lower insurance costs;
23. Similarities to Roth IRAs without IRS limits on contributions.
24. Allowed by Internal Revenue Code 72(e) and 7702.

CON’s:

1. You must qualify medically; (this can be easier than qualifying for long term care insurance);
2. Four to six week acceptance period is typical;
3. Designed for lump sums initial optimization is important IMECs cannot be easily added to;
4. Minimum lump sum is typically about $50,000 to optimize potential;
5. Will not accept most qualified money such as IRAs;
6. Income is available as a Tax Free Loan but not guaranteed for life, like annuities;
7. Total fees can typically run from 1.5% up-to 3% (these can be offset by minimum guarantees);
8. IRS imposes 10% penalties on cash distributions before age 59.5;
9. Not FDIC Insured;
10. Requires an experienced advisor to structure correctly.