Ask Us Anything: Your Stream Protection Plan FAQs Answered
Trying something new can be daunting, and naturally, ‘what ifs’ can creep in between you and a fantastic opportunity. Here, we answer your ten most pertinent questions about the Stream Protection Plan so you can start preparing for your tax-free retirement.
- Stress-testing protects Policies for worst-case scenarios.
- Stream diversifies for the best chance for growth.
- Multiple banking relationships allow us to pivot.
- Stream has a comprehensive continuation succession plan.
- The Stream Protection Plan is as good as it sounds.
1: What happens if bank loan rates don’t decrease and we experience prolonged high rates?
We stress-test the Plan and present a case design for every client to demonstrate how the Plan withstands an extended period of higher-than-normal interest rates. This ensures that even in a sustained high-interest rate environment, the Plan will continue to work for you.
2: What happens if the Policy indexes don’t perform as illustrated?
Stream refers to the index options’ 20-year backtesting to determine the appropriate allocation within the Policy.
The Policy is stress-tested to assume a worst-case scenario of returning zero percent in the first ten years. This case design demonstrates it can withstand conditions of no performance in the unlikely event of economic upset.
Stream also utilizes multiple indexes to diversify and give the Policy the best chance for growth. We review each Policy on an annual basis to ensure we’re still allocated to the best possible situation.
3: Are the case design stress tests likely to occur?
They haven’t in over one hundred years, so it’s extremely unlikely.
4: What happens if the bank funding my Policy fails?
Agility is everything. We maintain multiple banking relationships, which allows us to pivot to another bank if one decides not to renew loans, or is less competitive on rates.
5: What would happen to my Policy if Stream dissolved?
Stream has a comprehensive buy/sell, and disaster continuation succession plan. Plus, we have offices across the USA, so we still have access to data if one goes down.
You can be comforted knowing that Stream is backed and supported by Watermark Life, a full-service Brokerage General Agency (BGA) established in 2009.
Our law firm, Holland & Knight, thoroughly vetted Stream to ensure our compliance and security due diligence in this market space.
Want to see how we're tracking? With a 30-day notice, any Stream member can request our Reviewed Financials.
6: What would happen to my Policy if National Life Group goes under?
Rest assured, this is highly unlikely. National Life Group has operated for 175 years and holds an A+ rating.
Stream provides the option to exchange to another carrier (a ‘10:35 exchange’), allowing policyholders to transfer their Policies if necessary.
In addition, only one USA insurance carrier (Executive Life) has gone into insolvency since 1991, which was taken over by the state and eventually transformed into Aurora National Life Company.
7: Who’s eligible for a Stream Plan?
Individuals aged one through to 65 years, with a standard-or-better health rating,
8: Is there a minimum or maximum contribution?
There’s a five thousand dollar minimum and no maximum.
9: What’s the benefit of participating in Stream versus purchasing a traditional life insurance product?
Stream’s third-party lender and financing model secures you a higher death benefit, more living benefits, and greater cash accumulation. Plus, you only pay premiums for five years, unlike most other policies that require ongoing payments.
10: Stream sounds too good to be true. Is it?
Well, decide for yourself:
- 0% floor means you never lose what you put in.
- It’s tax-free.
- Fund your retirement in only five years.
- The commercial bank funds $5 for every $1 you contribute.
Want to know more? Visit the FAQ page.
