Suggestions on how to Present a Proposal

[nfl72]

I wrote a pretty good size deal a couple of weeks ago and the guy is having second thoughts. He is 81 MNT and I got him approved preferred.

He has two existing policies. The first is a $7,000 policy with MOO at $$35 per month. He has had it for around 15 years and it has $3900 in cash value.

The 2nd is for $3,000 at $30 per month with $900 in cash value.

I proposed to write a new policy at $10,000 for $135 per month. He has a home worth around $30,000 paid off and will be leaving that to his live in son. His main concern is a credit card with a balance of $9,000. His interest only payment on the card is $200. He has been paying $300 per month and will have it paid off in 3.2 years. I did suggest that might be true if he was able to go that long without using it.

I proposed to pull the cash out and apply most if not all to his high interest rate14.5% cc. He agreed but then sort of came out of the either. His big concern is his wife just died about 2 months ago. She was actually the one who filled out the lead card. He lost her $575 per month ss benefit. I think he is struggling a little bit to keep up with his bills in general.

How would some of you guys with far more experience or expertise than me present this in the most beneficial way to him?

 

[PA Bill]

I wrote a pretty good size deal a couple of weeks ago and the guy is having second thoughts. He is 81 MNT and I got him approved preferred.

He has two existing policies. The first is a $7,000 policy with MOO at $$35 per month. He has had it for around 15 years and it has $3900 in cash value.

The 2nd is for $3,000 at $30 per month with $900 in cash value.

I proposed to write a new policy at $10,000 for $135 per month. He has a home worth around $30,000 paid off and will be leaving that to his live in son. His main concern is a credit card with a balance of $9,000. His interest only payment on the card is $200. He has been paying $300 per month and will have it paid off in 3.2 years. I did suggest that might be true if he was able to go that long without using it.

I proposed to pull the cash out and apply most if not all to his high interest rate14.5% cc. He agreed but then sort of came out of the either. His big concern is his wife just died about 2 months ago. She was actually the one who filled out the lead card. He lost her $575 per month ss benefit. I think he is struggling a little bit to keep up with his bills in general.

How would some of you guys with far more experience or expertise than me present this in the most beneficial way to him?

Unless he had a dire need for the cash, I would have left it alone. I mean, regardless of his tight budget, why on earth would you more than double his monthly FE nut and not get him a nickel's worth more in coverage? No wonder he wants to cancel. C'mon man!

 

[nfl72]

He is 81 years old and has had heart issues in the past including quadruple bypass surgery about 4 years ago. How long might he be around? Hell, he could be gone tomorrow. I look at it like this. He is paying $62 per month for $5,300 worth of life insurance. He could apply $4,000 cash to his credit card and cut his $300 monthly payment in half. That savings alone would pay for hi higher life insurance payment.

Also when his wife died, 2 months ago he paid for 2 plots and 2 opening and closings. I suggested he might consider going with a new $7,000 or $8,ooo policy as he might not need 10K.

And yes he really could use the cash. He also told me nobody in his family has lived past the age of 80 except for him. I don't know about most FE guys but when I go into a home, I am looking for a way to make money.

 

[bboman23]

He is 81 years old and has had heart issues in the past including quadruple bypass surgery about 4 years ago. How long might he be around? Hell, he could be gone tomorrow. I look at it like this. He is paying $62 per month for $5,300 worth of life insurance. He could apply $4,000 cash to his credit card and cut his $300 monthly payment in half. That savings alone would pay for hi higher life insurance payment.

Also when his wife died, 2 months ago he paid for 2 plots and 2 opening and closings. I suggested he might consider going with a new $7,000 or $8,ooo policy as he might not need 10K.

And yes he really could use the cash. He also told me nobody in his family has lived past the age of 80 except for him. I don't know about most FE guys but when I go into a home, I am looking for a way to make money.

You'll be putting a very sick person into a new contestible period. Why not reduce pay up the others and write him a policy for the remaining amount he needs. Or not write anything. If reduced paid up gets him 7k or so, that would probably be plenty. Then he can save the money he was paying on two policies each month.

 

[nfl72]

"Or not write anything."


that's what I am trying to avoid!

His main reason for wanting to do something that makes sense is he really could use the cash. by going the reduce paid up route he won't get any, will he? I might be wrong but my way of thinking is if he does nothing and dies in the next couple of years he is giving the insurance company a boat load of cash value? That just as easily could have been applied towards his cc debt, which he does not want to leave to his son.

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and as far as the contestability period. If he discloses all his meds and answers the questions right is that really my concern?

Getting 5k out of a ten thousand dollar policy seems to be a huge benefit?

 

[bboman23]

"Or not write anything."

that's what I am trying to avoid!

His main reason for wanting to do something that makes sense is he really could use the cash. by going the reduce paid up route he won't get any, will he? I might be wrong but my way of thinking is if he does nothing and dies in the next couple of years he is giving the insurance company a boat load of cash value? That just as easily could have been applied towards his cc debt, which he does not want to leave to his son.

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and as far as the contestability period. If he discloses all his meds and answers the questions right is that really my concern?

But he will be paying a lot more per month to get that cash. And starting a 2 year contestible period. If reduced paid up was 7k and a new 3k policy was 30.00....he could pay extra on the CC.

Or you could look into a single pay option and you'd get paid and he wouldn't have a monthly payment anymore.

Then he could pay extra on CC.

 

[AboutThatLife]

But he will be paying a lot more per month to get that cash. And starting a 2 year contestible period. If reduced paid up was 7k and a new 3k policy was 30.00....he could pay extra on the CC.

Or you could look into a single pay option and you'd get paid and he wouldn't have a monthly payment anymore.

Then he could pay extra on CC.

I've never tried that before. Does the single pay work out better than the RPU?

 

[bboman23]

I've never tried that before. Does the single pay work out better than the RPU?

Sometimes it does. If it's close, do SP. If RPU is way more i just go that route normally.

 

[WholeLife]

"Or not write anything."

that's what I am trying to avoid!

At age 81 and with a heart history, there's no way I would consider putting that guy in a new contestable policy. The RPU option discussed above seems to be the best option for him.

Always do what is right for the customer and you will prosper in the end. What comes around goes around.

 

[WinoBlues]

Brian for the win.

.............