HOW TO OPEN A 770 ACCOUNT?

[Edgar]

Before telling you how to open this "770 account", let me tell you what it is: This "770 account" is not more than Permanent Life Insurance with a twist – it maximizes the Life Benefit and not the Death Benefit. There are many factors that need to be in place before the life insurance policy can turn into a “770 account.” It has to be from a Mutual Insurance company (Participating Whole Life Insurance), it needs to have a paid up additions rider, you will need to be on the MEC line (Modified Endowment Contract) of the policy , and it works better with non-direct recognition companies. When structured correctly (as a 770 account), you will get the following: No risk, guarantees, no penalties, liquidity use and control of your money, protected from creditors, leverage, tax deferred growth, tax free distributions, competitive rate of return, collateral, disability benefits (optional) until age 65, and a Death Benefit that will go to the heirs tax free.

Having said that (and going back to your question): There are many insurance companies that can do it, but in my experience, there are just about 7 companies in the USA that are the best for what you want to accomplish. You can't go directly with the companies, but you will need to find a broker that is connected with those companies. If he/she is a good broker, he will spend some time reviewing your case and comparing results with all 5 companies to make sure you will get the best policy or "770 account" for you. You need to be careful because very few life insurance agents know how to do these "770 accounts.” You need special riders etc. Most importantly, the federal government put a restriction on these accounts in the 80’s because they were losing too much money on taxes! So now the government sets the maximum amount of money you can put in these accounts based on the Death Benefit you are purchasing. So you want to be right there on the maximum amount you can put to maximize your life benefits (not your death benefit). But if you pass the maximum amount line, then it becomes a MEC or a “modified endowment contract,” which means that you lose the tax-free privilege.

So if you are interested, I can guide you in opening a 770 account. I am located in Nashville, TN but I am licensed to do business in most states; I could talk with you over the phone and design the right plan based on your age, income, needs, plans, etc. Then you can see some illustrations that explain exactly how it will work for you.

If you have an agent that you trust, you can also talk with him about it; once he prepares a plan for you, I could double check it and give you an unbiased opinion – free of charge.

If you have any more questions, feel free to send me an email: edgar@arceofinancial.com
God bless you!
Edgar Arceo