WWYA what Would You Advise?

[Arookaria]

PI is healthy, 47 yrs old M, NT. has three kids ages 12 - 20. Wife doesn't work and is financially dependent on him. He has 29 years left on a 30 year mortgage that's just less than 190k. He wants protection for his family but has told me can afford no more than $80/month.
What would be best? 20 year term? Ladder a ten year and a thirty year? A ten and a twenty? ART? Something completely different?
Sincere advice would be greatly appreciated.

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[TwiLight]

PI is healthy, 47 yrs old M, NT. has three kids ages 12 - 20. Wife doesn't work and is financially dependent on him. He has 29 years left on a 30 year mortgage that's just less than 190k. He wants protection for his family but has told me can afford no more than $80/month.
What would be best? 20 year term? Ladder a ten year and a thirty year? A ten and a twenty? ART? Something completely different?
Sincere advice would be greatly appreciated.

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Transamerica Super (Preferred rate) for a 47Mnt for $200k 30 year term is only $70.18/mo.

The Standard Plus rate is: $91.35/mo

 

[Arookaria]

Transamerica's Super (Preferred rate) for a 47Mnt for $200k 30 year term is only $70.18/mo.

The Standard Plus rate is: $91.35/mo

Dont you think he needs a bigger face than that for the first ten years while kids are still living at home and dependent on his income that's why i thought about laddering a ten and a twenty

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[TwiLight]

Dont you think he needs a bigger face than that for the first ten years while kids are still living at home and dependent on his income that's why i thought about laddering a ten and a twenty

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Definately, I was looking at the Mortgage Need.

He should be about 10x earnings till the kids leave the house. So a Ladder approach could work. 10 year at say $750k would be $74.16/mo Pref.
10 year term at $500k is: $50.31/mo Pref. $500k for 20yr term is $82.25/mo pref.

The budget is a bit tight to do much else.

Actually $250k is less money than $200k because of the lower band. $71.75/mo Pref for 30yr. $45.94/mo Pref for 20yr.

 

[Arookaria]

Definately, I was looking at the Mortgage Need.

He should be about 10x earnings till the kids leave the house. So a Ladder approach could work. 10 year at say $750k would be $74.16/mo Pref.
10 year term at $500k is: $50.31/mo Pref. $500k for 20yr term is $82.25/mo pref.

The budget is a bit tight to do much else.

Actually $250k is less money than $200k because of the lower band. $71.75/mo Pref for 30yr. $45.94/mo Pref for 20yr.

yeah I like the ladder with the 10 and 20, its bad that after 20 he will be out of term and be 67 but you can only do so much with such a budget.
Thank you!

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I'm a pretty new agent so I'm gonna bring another agent along with me to split the commish but I just wanted to get opinions of people on here.

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[Cornelius]

The thing is as he needs coverage but what if anything happened to the wife what would he do? In a perfect world he needs to see what he can cut from his spending to consider the right amount of coverage. Does he get back a tax refund every year? If so then maybe some of that can be worked in.

 

[Arookaria]

The thing is as he needs coverage but what if anything happened to the wife what would he do? In a perfect world he needs to see what he can cut from his spending to consider the right amount of coverage. Does he get back a tax refund every year? If so then maybe some of that can be worked in.

Ok I have never thought about that. I do know his budget is tight and yes I think so too that he should budget more than that. He gave me a price range of 60-80/month to work with.
I could bring up the tax return, not a bad idea at all

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[Tahoe Ray]

PI is healthy, 47 yrs old M, NT. has three kids ages 12 - 20. Wife doesn't work and is financially dependent on him. He has 29 years left on a 30 year mortgage that's just less than 190k. He wants protection for his family but has told me can afford no more than $80/month.
What would be best? 20 year term? Ladder a ten year and a thirty year? A ten and a twenty? ART? Something completely different?
Sincere advice would be greatly appreciated.

Sent from my IPhone

Not really enough info (basic health, what does he make, are his kids in/going to college, what's his spending like, any thoughts on having something permanent etc.) BUT:

The ladder approach is great for income replacement. You could get 250k of 20yr (I normally don't buy clients term past retirement age...of course there are exceptions.) w/ a 250k 15yr and a 250k 10yr term rider from Banner. Total of 750k for 10, 500k for 15 and 250k for 20. Assuming he needs less income replacement as he gets closer to retirement, this is not a bad strategy.

AG/Ohio National (not plus) are your least expensive 20 year for 750k at 109.94/108.34 respectively...Banner is 110.91 (all preferred).

Using Banner w/ their term riders, you're looking at 86.63/mo.

I do agree with Cornelius though...you probably want something on her too. I would sell him and take the app and then come back and sell her on something small (100k?) after delivery...

Just a thought...

 

[Arookaria]

Not really enough info (basic health, what does he make, are his kids in/going to college, what's his spending like, any thoughts on having something permanent etc.) BUT:

The ladder approach is great for income replacement. You could get 250k of 20yr (I normally don't buy clients term past retirement age...of course there are exceptions.) w/ a 250k 15yr and a 250k 10yr term rider from Banner. Total of 750k for 10, 500k for 15 and 250k for 20. Assuming he needs less income replacement as he gets closer to retirement, this is not a bad strategy.

AG/Ohio National (not plus) are your least expensive 20 year for 750k at 109.94/108.34 respectively...Banner is 110.91 (all preferred).

Using Banner w/ their term riders, you're looking at 86.63/mo.

I do agree with Cornelius though...you probably want something on her too. I would sell him and take the app and then come back and sell her on something small (100k?) after delivery...

Just a thought...

yes it would be a lot easier for me to figure out what his best for his budget if I knew already exactly what he was going to qualify for beforehand.

 

[Norton]

Another way to find money in his budget: Does he contribute to a 401k or other retirement fund? If so, you've got extra money right there. He thinks he's saving for later, providing for himself and family... but by contributing just 1% less, he could use that extra money to get an extra $100,000 (maybe even $250k) to protect them. If he's a normal-income working-class Joe, that's maybe $500 extra dollars per year available after taxes. How long would it take to turn that into over $100k, any other way?