Jamesbond, it's not all about needs.  It is also about wants.  What if they want a guarantee that they will pass on at least $4,000,000?  What if they want to do this and still invest aggressively?

Jamesbond,



Why not?  Equitable will let you pull of a guaranteed 6% off (it’s
not really a coupon as I disclose) dollar for dollar against from the
first year on without touching the annuitization base or the death
benefit.  Let’s say the market returns 0%.  Ok, even -2% or
so with all applicable fees.  The client can pull off that 6%
every year, for many years and virtually exhaust the contract, then die
and still pass $500,000 death benefit to his or her heirs. 



It’s a real headache to get an extra $500,000 inheritance.

except, the va will get hit with estate taxes the the beneficairy will have to pay, so the 500k suddenly becomes 200k. If the client want to “pass on money”, then they should buy life insurance. VA’s are NOT designed to pass on assets, they are designed to create a income flow. If you are selling VA as a vehicle to pass assets to heirs, it is highly inefficient.  

Jamesbond, You're right, The VA will get hit with estate taxes, but so what.  Do you know of an investment that they could make that wouldn't get hit with estate taxes?  I sure don't assuming that he wants to maintain control of his money.  (Except for a 529 plan if he lives for 3 years.)   

Is this person insurable?  If so, what if he wants to pass on the money, but still wants access to the cash if he changes his mind. best. 

I am not saying that this mythical person should buy a VA because we don't know anything about the situation.  However, I believe it is a huge mistake to rule it out without knowing all of the facts.   With the limited information, we could add plenty of facts that would make the VA a very suitable investment.

Example:  Client is uninsurable.  He wants to invest aggressively.  He also wants a guarantee that if he dies before touching the money, his family will get at least 4 million.  Is there a better solution than a VA?  I don't know of one.