Life Insurance for Someone Very Unhealthy

For the agent, not sure what the chargeback rules are for Americo.

For the policyholder, she'd come out $9.87 ahead with Americo if she dies in 11 months...$129.37 ahead with Americo if she dies in the 23rd month. If she dies in the 25th month, she's lost $3,909 by having Americo, and it gets worse each month for the policyholder.

When you figure that that Americo policy won't be on the books very long at that price, is it really good for the agent?:nah:

in these type of situations whatever is best for the client would be best for me.
 
For the agent, not sure what the chargeback rules are for Americo.

For the policyholder, she'd come out $9.87 ahead with Americo if she dies in 11 months...$129.37 ahead with Americo if she dies in the 23rd month. If she dies in the 25th month, she's lost $3,909 by having Americo, and it gets worse each month for the policyholder.

When you figure that that Americo policy won't be on the books very long at that price, is it really good for the agent?:nah:

Where are you getting these numbers from?

If the client dies in the 12th month their family would get about 49.87%($691) more with Americo.

If they die in the 24th month they will receive 44%($1404) more with Americo(assuming gerber pays 120% year 2).

Only in the 3rd year is it more beneficial for the family if the insured were to die. But that is only by a 25%($2,500) margin.

By year 4 it doesn't matter. All in all there is only a 33.33% chance that the family will receive more money with Gerber rather than going with Americo.
 
Where are you getting these numbers from?

If the client dies in the 12th month their family would get about 49.87%($691) more with Americo.

If they die in the 24th month they will receive 44%($1404) more with Americo(assuming gerber pays 120% year 2).

Only in the 3rd year is it more beneficial for the family if the insured were to die. But that is only by a 25%($2,500) margin.

By year 4 it doesn't matter. All in all there is only a 33.33% chance that the family will receive more money with Gerber rather than going with Americo.


If she dies in month 11...Americo @ $94.77 x 11 months = $1,04247 premium paid in x 5% = $52.12 interest.
Gerber @ $38.41 x11 months = $422.51 x 10% = $42.25 interest. $52.12 - $42.25 = $9.87 gain for Americo.

If she dies in month 23...Americo @ $94.77 x 23 months = $2179.71 premium paid in x 10% = $217.97 interest.
Gerber @ $38.71 x 23 months = $883.43 x 10% = $88.34 interest. $217.97 - $88.34 = $129.63 gain for Americo.

If she dies in month 25...Americo @ $94.77 x 25 months = $2,369.25 paid in. $7,500 benefit - $2,369.25 paid in = $$5,130.75
Gerber @ $38.41 25 months = $960.25 paid in. $10,000 benefit - $960.25 paid in = $9,039.75.

Gerber $9,039.75 - Americo $5,130.75 = $3909 ahead by having Gerber.

If she dies in month 37...Americo @ 94.77 x 37 months = $3,506.49 paid in. $10,000 benefit - $3,506.49 paid in = $6,493.51.
Gerber @ 38.41 x 37 months = $1,421.17 paid in. $10,000 benefit - $1,421.17 paid in = $8,578.83.

$8,578.83 - $6,493.51 = $2,085.32 gain by having Gerber and that gain will grow an additional $56.36 each month she stays alive.:yes:
 
If she dies in month 11...Americo @ $94.77 x 11 months = $1,04247 premium paid in x 5% = $52.12 interest.
Gerber @ $38.41 x11 months = $422.51 x 10% = $42.25 interest. $52.12 - $42.25 = $9.87 gain for Americo.

If she dies in month 23...Americo @ $94.77 x 23 months = $2179.71 premium paid in x 10% = $217.97 interest.
Gerber @ $38.71 x 23 months = $883.43 x 10% = $88.34 interest. $217.97 - $88.34 = $129.63 gain for Americo.

If she dies in month 25...Americo @ $94.77 x 25 months = $2,369.25 paid in. $7,500 benefit - $2,369.25 paid in = $$5,130.75
Gerber @ $38.41 25 months = $960.25 paid in. $10,000 benefit - $960.25 paid in = $9,039.75.

Gerber $9,039.75 - Americo $5,130.75 = $3909 ahead by having Gerber.

If she dies in month 37...Americo @ 94.77 x 37 months = $3,506.49 paid in. $10,000 benefit - $3,506.49 paid in = $6,493.51.
Gerber @ 38.41 x 37 months = $1,421.17 paid in. $10,000 benefit - $1,421.17 paid in = $8,578.83.

$8,578.83 - $6,493.51 = $2,085.32 gain by having Gerber and that gain will grow an additional $56.36 each month she stays alive.:yes:
A better comparison would be basing it on equal premium instead of face amount. Bases on your figures Gerber would be ahead in every case.
 
A better comparison would be basing it on equal premium instead of face amount. Bases on your figures Gerber would be ahead in every case.
I kept trying to say that but my voice to text kept messing up
 
I kept trying to say that but my voice to text kept messing up

Sure it did.:skeptical:

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A better comparison would be basing it on equal premium instead of face amount. Bases on your figures Gerber would be ahead in every case.

No, my 1st 2 examples have Americo on top because their 5% and 10% ROP is based on a larger premium, so death in the 1st 2 years is slightly in Americo's favor.

To compare premiums, Americo @ $94.77 gets $10K...Gerber @ $94.65 gets $25K. It was a lot easier that way.:laugh:
 

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