Company to Buy a Life Insurance Policy

dbuckner · 07-29-2009, 06:10 PM

Does anyone have a recommendation or suggestion about a company to talk with concerning the buy-out of an existing life insurance policy of a male who is 76 and no longer needs his life policy . He has paid the premiums for over 23 years, but they have risen above his budget.

D. Buckner
404-797-7489

dgoldenz · 07-29-2009, 06:30 PM

There's going to be a lot of factors that go into it.....

1. What was the risk class issued on the policy?
2. Is this a term or permanent policy? If term, is there still a conversion option left?
3. How is his health as of now?
4. What state are you in, or the what state is the person selling the policy in I should say? Some states require "accredited investor" status to be able to sell a policy. Google the term for more info on it.

insuranceexec · 07-29-2009, 08:19 PM

Originally Posted by dgoldenz

There's going to be a lot of factors that go into it.....

1. What was the risk class issued on the policy?
2. Is this a term or permanent policy? If term, is there still a conversion option left?
3. How is his health as of now?
4. What state are you in, or the what state is the person selling the policy in I should say? Some states require "accredited investor" status to be able to sell a policy. Google the term for more info on it.

Very correct assessment, dgoldenz. Again depending on your state I have several informal inquiries you can submit to see what if anything can be done for your prospect.

Give me a call and I will see what I can do for you.

dbuckner · 02-01-2010, 10:13 AM

The policy has been converted from term to whole life, sold and funded!

WinoBlues · 02-01-2010, 10:33 AM

Originally Posted by dbuckner

The policy has been converted from term to whole life, sold and funded!

What are the details?

Death Cab For Tootie · 02-01-2010, 03:10 PM

Originally Posted by dbuckner

The policy has been converted from term to whole life, sold and funded!

What does this mean? They converted to WL and immediately sold the policy? Or did they convert to WL back in the day and then sold it? Or are you confusing WL and UL? I ask because if the policy was a WL, and the client held it for long enough, there would be CSV in the policy that could be used to pay down premium or give the client a paid-up policy.

I'll hold off on passing judgement, but something doesn't seem quite right here.

dgoldenz · 02-01-2010, 03:30 PM

Originally Posted by Death Cab For Tootie

What does this mean? They converted to WL and immediately sold the policy? Or did they convert to WL back in the day and then sold it? Or are you confusing WL and UL? I ask because if the policy was a WL, and the client held it for long enough, there would be CSV in the policy that could be used to pay down premium or give the client a paid-up policy.

I'll hold off on passing judgement, but something doesn't seem quite right here.

I am not aware of any companies that allow conversions at age 76 unless the policy is less than 5 years old, most stop at age 70 or earlier....can you share which company this was?

BNTRS · 02-01-2010, 04:59 PM

Originally Posted by dgoldenz

I am not aware of any companies that allow conversions at age 76 unless the policy is less than 5 years old, most stop at age 70 or earlier....can you share which company this was?

The big mutuals go beyond 70, at least Mass and Guardian. Not sure about NML, but I believe NYLife will.

dgoldenz · 02-01-2010, 05:24 PM

Originally Posted by BNTRS

The big mutuals go beyond 70, at least Mass and Guardian. Not sure about NML, but I believe NYLife will.

How far beyond 70? Guardian looks like it will go to 80 if you buy the extended conversion rider....but were these same riders available 23 years ago? Interesting at least.

Death Cab For Tootie · 02-01-2010, 09:53 PM

Originally Posted by dgoldenz

I am not aware of any companies that allow conversions at age 76 unless the policy is less than 5 years old, most stop at age 70 or earlier....can you share which company this was?

I was just trying to get clarification of the situation. If the policy was a WL policy, there are much less reasons to sell it in the secondary market just because "the client is tired of paying premiums." There are tons of options if the policy has any decent amount of CSV.

ticker_shuffle · 02-01-2010, 10:21 PM

Originally Posted by Death Cab For Tootie

I was just trying to get clarification of the situation. If the policy was a WL policy, there are much less reasons to sell it in the secondary market just because "the client is tired of paying premiums." There are tons of options if the policy has any decent amount of CSV.

he said convert term to whole life...is that possible?

LGilmore · 02-01-2010, 11:18 PM

"he said convert term to whole life...is that possible?"

Honestly? You don't know?

sixty6 · 02-09-2010, 11:26 AM

Originally Posted by ticker_shuffle

he said convert term to whole life...is that possible?

..wow..

But on another note, would you be able to tell us which company bought out the policy?