Cash Out on a 5 Star Policy

[nfl72]

I have a lady 77 FNT in a wheel chair with three policies for $1700, $5000 and $15000 three different companies. I met with her and her youngest son, his wife and grand daughter last week. I got her approved for a 15K premier at UHL. We did a three way call to get the info on the 15K at 5star. She is paying $68 per month and has $4900 in cash value.

When we called to cash in the policy they said they could not let us do anything because the owner of the policy was neither the insured nor the brother I was working with. They refused to tell us who the owner was. They called the youngest son back the next day and informed him the owner was his oldest brother who died ten years ago. The contingent beneficiary is the middle brother who is not healthy at all. He just had two legs amputated and is not the sharpest tool in the shed. The youngest brother handles all of the moms affairs.

5 Star refuses to give the money to the contingent beneficiary even though they have the death certificate for the primary. They say it has to go through probate.

Does that sound right?

 

[WinoBlues]

I have a lady 77 FNT in a wheel chair with three policies for $1700, $5000 and $15000 three different companies. I met with her and her youngest son, his wife and grand daughter last week. I got her approved for a 15K premier at UHL. We did a three way call to get the info on the 15K at 5star. She is paying $68 per month and has $4900 in cash value.

When we called to cash in the policy they said they could not let us do anything because the owner of the policy was neither the insured nor the brother I was working with. They refused to tell us who the owner was. They called the youngest son back the next day and informed him the owner was his oldest brother who died ten years ago. The contingent beneficiary is the middle brother who is not healthy at all. He just had two legs amputated and is not the sharpest tool in the shed. The youngest brother handles all of the moms affairs.

5 Star refuses to give the money to the contingent beneficiary even though they have the death certificate for the primary. They say it has to go through probate.

Does that sound right?

The ownership of the policy or the beneficiary?

The Bene has nothing to do with the ownership. They are probably talking about the policy/ownership has to go through probate. They may be looking at it as an estate asset. Which BTW, so may the dead owner's next of kin.

 

[jacobtn]

I have a lady 77 FNT in a wheel chair with three policies for $1700, $5000 and $15000 three different companies. I met with her and her youngest son, his wife and grand daughter last week. I got her approved for a 15K premier at UHL. We did a three way call to get the info on the 15K at 5star. She is paying $68 per month and has $4900 in cash value.

When we called to cash in the policy they said they could not let us do anything because the owner of the policy was neither the insured nor the brother I was working with. They refused to tell us who the owner was. They called the youngest son back the next day and informed him the owner was his oldest brother who died ten years ago. The contingent beneficiary is the middle brother who is not healthy at all. He just had two legs amputated and is not the sharpest tool in the shed. The youngest brother handles all of the moms affairs.

5 Star refuses to give the money to the contingent beneficiary even though they have the death certificate for the primary. They say it has to go through probate.

Does that sound right?

United home life will insure people first day coverage that are in a wheelchair?

 

[Newby]

I have a lady 77 FNT in a wheel chair with three policies for $1700, $5000 and $15000 three different companies. I met with her and her youngest son, his wife and grand daughter last week. I got her approved for a 15K premier at UHL. We did a three way call to get the info on the 15K at 5star. She is paying $68 per month and has $4900 in cash value.

When we called to cash in the policy they said they could not let us do anything because the owner of the policy was neither the insured nor the brother I was working with. They refused to tell us who the owner was. They called the youngest son back the next day and informed him the owner was his oldest brother who died ten years ago. The contingent beneficiary is the middle brother who is not healthy at all. He just had two legs amputated and is not the sharpest tool in the shed. The youngest brother handles all of the moms affairs.

5 Star refuses to give the money to the contingent beneficiary even though they have the death certificate for the primary. They say it has to go through probate.

Does that sound right?

It actually is right. If she hasn't died the beneficiary has no right to the money. If there isn't a documented contingent owner then the court has to decide which is what probate is.

Probably eadier to go RPU onnthat one if that is the automatic option. If the auto premium loan is the default option then the RPU won't work.

Sounds like she is on Medicaid and they were trying to avoid the policy counting as her asset. But you can't have it both ways. It's not her policy.

 

[nfl72]

the policy was taken out in 2002 or around that time. The payments are coming out of her bank account which is in the youngest sons name as well. There are only 2 kids left and they both want to cash in the policy.

I did call UHL ahead of time to confirm the wheelchair use was not an issue. The underwriter said it would have no bearing on the approval. they don't ask about it.

So the RPU way would be to call 5 star and see how much insurance the $4900 in cash value will buy? We do not have a policy to look at. It has been lost for years. And then supplement the rest with a new policy? The other 2 policies for $1700 and $5000 have cash value of $4800.

I obviously want to do what's best for the client but I also would like to write some new business. My dog needs cataract surgery!

 

[SammyJ]

Why would you cash in the $15k 5 star at $68 a month when the Uhl is at least $121 for their best rate? Also her policy is incontestable. That seems very unethical.Haven't you been in the business 7 yrs? I notice you ask a lot of questions that even a guy in the business 1 yr should know.

 

[Thedude]

the policy was taken out in 2002 or around that time. The payments are coming out of her bank account which is in the youngest sons name as well. There are only 2 kids left and they both want to cash in the policy.

I did call UHL ahead of time to confirm the wheelchair use was not an issue. The underwriter said it would have no bearing on the approval. they don't ask about it.

So the RPU way would be to call 5 star and see how much insurance the $4900 in cash value will buy? We do not have a policy to look at. It has been lost for years. And then supplement the rest with a new policy? The other 2 policies for $1700 and $5000 have cash value of $4800.

I obviously want to do what's best for the client but I also would like to write some new business. My dog needs cataract surgery!

You are trolling, good one.

 

[nfl72]

She's in a wheel chair and not all that healthy. Lets say she buys a new policy at 15K for $120 per month and dies in 6 months. Her family would come out $4,900 ahead. Maybe she and her family have a use for the money. She answered the health questions properly and they saw all her meds. I am not all that concerned about the 2 year contestability period. And ftr many knowledgeable people think all policies are contestable due to fraud.

$50 per month is 600 a year. What if she died in 3 years? They would still come out over $3,000 ahead. In 5 years they would come out $1900 a head. I have to believe there is a very good reason insurance companies don't like to insure people in wheel chairs. Just maybe its because they don't live very long.

And as far as asking what you consider dumb questions. Blow me. I have never had a day of training in my life for FE insurance. I have never ridden with anybody in my life. I take that back, I did meet a guy at a church for my first day and watched him present three people, writing one. I left thinking he should have written at least two. I have spent 5 days in the field this month and just broke $12,000 in bank deposits. And at least 2 of those days I had a huge hangover! I think I am probably doing better than the average bear.

Different people have different hot buttons and if I can hit the right button and make some money too; hooray for me.

 

[jdeasy]

She's in a wheel chair and not all that healthy. Lets say she buys a new policy at 15K for $120 per month and dies in 6 months. Her family would come out $4,900 ahead. Maybe she and her family have a use for the money. She answered the health questions properly and they saw all her meds. I am not all that concerned about the 2 year contestability period. And ftr many knowledgeable people think all policies are contestable due to fraud.

$50 per month is 600 a year. What if she died in 3 years? They would still come out over $3,000 ahead. In 5 years they would come out $1900 a head. I have to believe there is a very good reason insurance companies don't like to insure people in wheel chairs. Just maybe its because they don't live very long.

And as far as asking what you consider dumb questions. Blow me. I have never had a day of training in my life for FE insurance. I have never ridden with anybody in my life. I take that back, I did meet a guy at a church for my first day and watched him present three people, writing one. I left thinking he should have written at least two. I have spent 5 days in the field this month and just broke $12,000 in bank deposits. And at least 2 of those days I had a huge hangover! I think I am probably doing better than the average bear.

Different people have different hot buttons and if I can hit the right button and make some money too; hooray for me.

Fraud and contestability are different things. A policy 2 years old cannot be contested.

As far as the 1 star policy is concerned, the own is the owner. Has nothing to do with the beneficiaries or lack of beneficiaries.

You, or they, are going to have to get the family of deceased owner involved. 1 star will properly not do anything until the ownership is resolved.

 

[WinoBlues]

the policy was taken out in 2002 or around that time. The payments are coming out of her bank account which is in the youngest sons name as well. There are only 2 kids left and they both want to cash in the policy.

I did call UHL ahead of time to confirm the wheelchair use was not an issue. The underwriter said it would have no bearing on the approval. they don't ask about it.

So the RPU way would be to call 5 star and see how much insurance the $4900 in cash value will buy? We do not have a policy to look at. It has been lost for years. And then supplement the rest with a new policy? The other 2 policies for $1700 and $5000 have cash value of $4800.

I obviously want to do what's best for the client but I also would like to write some new business. My dog needs cataract surgery!

It is not their policy to cash out. They have no rights to it.