State Farm Term?

[Rearden]

I have a lady that called in to cancel her FE policy, and says she took out a $100,000 policy for $42 a month back in her late 40s; she's early 60s now.

The agent said the policy has the ability to be borrowed on.

Sounds like term or UL -- anyone have experience with this?

 

[Norwayguy]

I have a lady that called in to cancel her FE policy, and says she took out a $100,000 policy for $42 a month back in her late 40s; she's early 60s now.

The agent said the policy has the ability to be borrowed on.

Sounds like term or UL -- anyone have experience with this?

What does borrowing have to do with a policy designed to pay off final expenses. The real question is how likely is the policy going to still be inforce at death. Now obviously borrowing against the policy leads up to it being either some type of permenant policy like WL or UL or a ROP term policy that had some cash surrender value. No way of really fighting this unless you know what the policy is and if it will survive. Now based on timing this policy has been in place between 15 and 20 years which gets us back to the 1990's which if UL really needs to have an inforce done upon it. Question is how much control do you have (not assuming much since she cancelled your policy) and how much time is it worth to you.

 

[Rearden]

Well, I have her committed to holding off on cancelling until the SF agent does his insurance review appointment this Friday with her.

 

[WinoBlues]

I have a lady that called in to cancel her FE policy, and says she took out a $100,000 policy for $42 a month back in her late 40s; she's early 60s now.

The agent said the policy has the ability to be borrowed on.

Sounds like term or UL -- anyone have experience with this?

My money is on an old accumulator UL. Probably minimum funding and very possibly a UL term combo. Depending on her health these can be easy to replace. As Peter said an inforce is needed. But her last annual statement will also help. I love to run into these.

If you get a copy of the statement send it to me and I will help you read it.

----------

Well, I have her committed to holding off on cancelling until the SF agent does his insurance review appointment this Friday with her.

I would sell the second opinion idea. I know most of the FE guys hate GUL but if healthy it could smoke everything else with a rollover of the CVs.