Hello men and women here is the situation. 29 and 28 year old couple, he makes six figures and she makes 55-60K. Now these are the details 250,000 house, 1.5mill 30K term policy with ROP with AIG I do believe. She is just determined that they need a final expense policy, he does not think that they do. As far as f.e. what would the top carriers be for a couple this young?
non senior final expense.
- Thread starter mswebb06
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- Staff
- #2
- 16,876
With that much coverage in place, I assume her concern is to have the money quickly if they need it for a funeral. They already have plenty of money but it will take 30 to 60-days to get it and can easily take up to 6-months if it's an autopsy case (we have a young one right now that has been dead over 3-months and the doctors won't sign off on the death certificate.)
The best choice for a rapid payoff upon death is Forethought. They also have rates all the way down to age zero. They settle death claims within 48-hours in most cases and do not need a death certificate.
Other choices are out there if rapid settlement is not her concern but if she can wait on the money, what's wrong with the 1.5 mil?
- Staff
- #4
then the funeral will take place after they sign ......most funeral company's will work with you....
- 16,876
They would in 1990...not in 2008. Funeral homes have trouble getting their money these days. More every day will not accept insurance assignments or waiting on payment. The ones who do will usually charge at least 5% extra for waiting 30-days (that's 60% APR)
IF the policy is assignable, and IF ALL beneficiaries are living and present and able to sign and IF they are willing to pay the fees of an advancing company, they can usually take an advance on the policy.
A whole new industry has opened up to serve this need. Companies that take assignment of insurance policies and advance the money to the funeral homes for a 5% fee. Kind of like the Check N 2 Cash places except for life insurance after a death.
Forethought alone has a complete division that handles advances for other insurance company's life insurance proceeds. At's a big (and getting bigger) business.
- Thread starter
- #6
- 11,280
Why don't they just pre pay?
- 16,876
Yes, you are missing something. Most people in the $150,000 income range are not flush with a lot of cash laying around. That's not the super-rich.
The money they have is invested to try to maximize interest. That usually means it's not readily available for emergency situations.
They can insure themselves for such a low amount at their ages, they want to supplement their temporary "term" insurance with a proper amount of permanent "whole-life" insurance. This is the right thing for them to do. It's your job as an agent to figure out what needs they have for it and the best product for them.
It might be better to have them buy some participating whole-life if they don't mind some underwriting rather than a traditional final expense.
The thing that should open your eyes is; they are recognizing a legit insurance need and you as their agent think they have it covered with their term insurance.
One option I would show them is how you can save them money on regular straight term (no ROP) and sell them the proper amount of whole-life and they would have exactly what they need and probably at the same cost they are already paying or less.
Or they may just want to add the whole-life to what they already have.
- 7,790
I hate to sound crass, but do you think there might be some surreptitious thinking here-----like planning the perfect murder?
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