Insurance Agent Forum

[loginname]

I had a client's mother call me out of the blue. She is mad at NY Life and her agent. She wants me to find her a new $10,000 death beneft product. basically a burial policy. She has a heart issue which I ran past my underwriter at a big carrier. They indicated she would be table 5 or 6 with them. They don't write anything under $50,000 so I need to find another avenue.

Any ideas? Who do you use for these small policies?

[James]

Originally Posted by loginname

I had a client's mother call me out of the blue. She is mad at NY Life and her agent. She wants me to find her a new $10,000 death beneft product. basically a burial policy. She has a heart issue which I ran past my underwriter at a big carrier. They indicated she would be table 5 or 6 with them. They don't write anything under $50,000 so I need to find another avenue.

Any ideas? Who do you use for these small policies?

If the coverage is in place via NYL, I wouldn't touch it with a ten foot pole at the age of 73 and cardiac history.

[Mr. Bill]

Aren't there TV ads for this type of thing?

[Newby]

Originally Posted by loginname

I had a client's mother call me out of the blue. She is mad at NY Life and her agent. She wants me to find her a new $10,000 death beneft product. basically a burial policy. She has a heart issue which I ran past my underwriter at a big carrier. They indicated she would be table 5 or 6 with them. They don't write anything under $50,000 so I need to find another avenue.

Any ideas? Who do you use for these small policies?

I run into this everyday. What she is mad about is her NYL policy was sold to her by AARP and it is term -life coverage and the premium increases every 5-years. If she lives long enough the term is over and she loses all her money. She didn't read any of that when she bought it because she trusted AARP...is that correct so far?

Oh yeah, I left out "her" agent is not really her agent. She bought the policy by mail. But when she figures out she has problems, she thinks she can just call the local NYL agent and he basically blew her off. Right?

What she really wants is a funeral policy. Usually sold through a funeral home (but they may work with you.) They are guaranteed issue and she can buy whatever amount her funeral will actually cost. She can pay it over as long as 10-years (not usually wise) and if she pays it off within 24-months they usually have a same-as-cash option (that's the best way.)

Other than that, you could sell her a final expense policy where she just selects an amount and pays for life (or 10-years if that option is chosen.) Most policies have liberal health guidelines. If she doesn't qualify for those she can get guaranteed issue from Americo or Presidental among others.

I would recommend Shenandoah, Americo, Oxford, Monumental, Motorists, LaFayette and Columbia as some companies to look at for final expense. There are many many more also.

If she has the term version of AARP/NYL she could also convert it to their whole-life version but they are usually one of the most expensive. She can do better.

[arnguy]

The final expense policies are usually for small face amounts. Also, they are sold with a graded death benefit (usually 2 or 3 years) if the health questions responses are negative. Newby has already mentioned some of the companies that market this product. You can also "google" final expense insurance to broaden your choice of companies.

[Angelp]

Try Illinois Mutual's level death whole life. I am currently working a case for an 84 yr old that wants 10k policy. Initial quote came back at $1706/yr. not bad. We'll see if it sticks. Issue ages are 45-85.

[lifeinsuranceguy]

Transamerica Final Expense Whole Life. Death benefit goes down to $1,000 or $2,000 and it is not a graded policy like Presidential's guarantee-issue.

One of the better parts about the product is that they shave down from Table H to Standard so that there is only two issue classes; Standard Non-Smoker or Standard Smoker. No med exam(very few instances will they require one).