76 Year-old Mortgage Protection

[SevenDeuce]

I have a client that is 76 years old, male, healthy that just takes cholesterol meds.

He has a mortgage in his farm.

Currently has $12K through 3 policies with AIL that he pays $128/month on. These policies are between 5 years and 18 months. I can beat those prices by a few dollars as a whole, but not really liking to do that for him.

He has an 8 year old adopted daughter, and his wife passed away last year.

He wants to make sure she doesn't lose the farm when he passes.

Did anyone do term for a 76 year old?

I quoted him whole life(rounded numbers here), $725/month for 100K, $364/month $50k, $185/$25K. But didn't want flags thrown if he splits the $100K up through multiple smaller policies.

If something is better than what I have in my bag, I'd be open to hearing it.

So, just asking what's out there that might help him better.

Thanks.

 

[onefastpony]

I have a client that is 76 years old, male, healthy that just takes cholesterol meds.

He has a mortgage in his farm.

Currently has $12K through 3 policies with AIL that he pays $128/month on. These policies are between 5 years and 18 months. I can beat those prices by a few dollars as a whole, but not really liking to do that for him.

He has an 8 year old adopted daughter, and his wife passed away last year.

He wants to make sure she doesn't lose the farm when he passes.

Did anyone do term for a 76 year old?

I quoted him whole life(rounded numbers here), $725/month for 100K, $364/month $50k, $185/$25K. But didn't want flags thrown if he splits the $100K up through multiple smaller policies.

If something is better than what I have in my bag, I'd be open to hearing it.

So, just asking what's out there that might help him better.

Thanks.

You should look into a fully unwritten GUL with a guaranty to age 100.

 

[Tahoe Ray]

You could get him 10 year term from a bunch of companies but I agree with Pony (unless he only has a few years left on the mortgage and can't afford much premium).

100k GUL to age 100 at standard (and with one common med, maybe he could do better) will run you less than 500/mo with Symetra, Protective, or AG.

You could even go to 121 with Symetra or NA and be in the 450 range.

If he can afford more and the mortgage is larger, you could blend term (so it runs out as the mortgage is paid down) with the GUL...lots of options.

 

[SevenDeuce]

You could get him 10 year term from a bunch of companies but I agree with Pony (unless he only has a few years left on the mortgage and can't afford much premium).

100k GUL to age 100 at standard (and with one common med, maybe he could do better) will run you less than 500/mo with Symetra, Protective, or AG.

You could even go to 121 with Symetra or NA and be in the 450 range.

If he can afford more and the mortgage is larger, you could blend term (so it runs out as the mortgage is paid down) with the GUL...lots of options.

Unfortunately the companies I write that have term or gul policies stop at 70.

What is NA? Do any of those companies do direct agent appointments?

 

[Tahoe Ray]

Unfortunately the companies I write that have term or gul policies stop at 70.

What is NA? Do any of those companies do direct agent appointments?

North American. Their sister company is Midland National and should have similar (if not exact) pricing. Midland will appoint you direct.

 

[WinoBlues]

I agree with Pony and Ray as well.

Something to consider. You are not only looking at mortgage here, he has a daughter he needs to cover for 15-20 years. So the overall need may be higher. GUL sounds like a great place to start. Lattering may help keep the cost down. I do not have the info at hand but if Protective will write him under a term alternative plan they may work as they have a great feature when it terms out. Instaed of premiums terminating or rocketing into the stratosphere it becomes DT to 100 at the same premium.

 

[Jbbarea]

Term for a 76 year old isn't going to happen I think with anyone by the time underwriting is done and you'll look like a schmuck for misleading him. Bottom line is he really isn't going to find what he wants. He's better off going the living trust route and try to protect the land. Or sucking it up and buying the whole life. Be a good advisor and give him the truth. Just my 2 cents....

 

[WinoBlues]

Term for a 76 year old isn't going to happen I think with anyone by the time underwriting is done and you'll look like a schmuck for misleading him. Bottom line is he really isn't going to find what he wants. He's better off going the living trust route and try to protect the land. Or sucking it up and buying the whole life. Be a good advisor and give him the truth. Just my 2 cents....

I completely disagree. I am working on a guy in his mid 70, $500,000 I believe will get preferred. Has an ART he is paying $7,000.00 + per year now.

How is the underwriting going to be different on Whole Life?

 

[Jbbarea]

The underwriting won't be different at all. But the appetite for the risk is vastly different as well as different premium tables. I'm definitely not saying your wrong. I'm just saying I've never seen a 76 year old get approved for high payout term policies. I've seen some 50k ones go through attached to an auto sale (I do p&c). But if he can swing it more power to him. My philosophy has been to be fast to disqualify so I can move to another more likely prospect. Many agents get caught up trying to land the big fish instead of focusing on volume. Again just my preference.

 

[Tahoe Ray]

The underwriting won't be different at all. But the appetite for the risk is vastly different as well as different premium tables. I'm definitely not saying your wrong. I'm just saying I've never seen a 76 year old get approved for high payout term policies. I've seen some 50k ones go through attached to an auto sale (I do p&c). But if he can swing it more power to him. My philosophy has been to be fast to disqualify so I can move to another more likely prospect. Many agents get caught up trying to land the big fish instead of focusing on volume. Again just my preference.

Completely disagree. I write people in their 70s all of the time. I've also seen P+ on large cases with people in that age range.

Besides, my initial numbers were all on a standard rating. That is very attainable for someone that age on one med for a controlled condition (with a good history of course).

I agree that some cases should be left alone...this is not one of them.