Term - Final Expense

[donamese]

I am wondering if there are any senior term products out there that are similar to final expense. I know AARP (NY Life) has the 5 year increasing policies. I am thinking of something more like a lower face term product that is level pay, simplified issue, so it works just like FE but no cash values so the death benefit would be better. Does anything like this exist currently?

 

[JRoot]

Fidelity Life has one down to $10,000, BUT it's a 3 year graded period.

There's other companies that have a $25,000 term with no exam, but they APS - so not really simplified issue.

 

[WinoBlues]

I am wondering if there are any senior term products out there that are similar to final expense. I know AARP (NY Life) has the 5 year increasing policies. I am thinking of something more like a lower face term product that is level pay, simplified issue, so it works just like FE but no cash values so the death benefit would be better. Does anything like this exist currently?

Level term for how long?

Sagicor GUL goes down to $25,000. No med to age 65 and offers a rated plan. No exam, No phone interview, No paper app required, A real policy. $25,000 is really not that high for Final Expenses unless they plan on dying soon. Probably in the T3 area. Not for your sicker prospects.

United Home Life's ROPTerm goes reduced paid up at the end of the level term period. SI.

 

[Mattschmidt]

Depends on what exactly age brackets you mean for seniors.

Some comapnies may make approvals without aps or exams

Also like Jeff said 25k usually minimum for these types of products

 

[yelchevelle]

As already said, you are looking for a GUL, and not a term. That nyl final expense term should be outlawed. I started in final expense insurance, and I met very few people that understood how those policies worked. A lot of the time, you would have to call their customer service, and have the insured ask them specific questions about their plan for them to believe you. They thought they had a really good deal.

The scary thing to me about GUL's for the typical final expense client is the lack of protection from missed payments. A lot of times, people that are buying those plans cannot manage their money very well. At some point, they very well could miss a payment. With a WL, the companies just deduct the payment from the death claim. With a GUL you are playing with fire. You might lose the guarantee if you do that. It was my experience that there is a fine line of who is responsible enough to make sure that there is money every month for their insurance and who is not in that demographic.

I have seen it several times where a 25k GUL would have been the same price as a 12-15k final expense policy. You just don't want to sell that to someone that cannot make consistent monthly payments to match what is required by the general ledger of the policy.

The other cool thing you can do with a lot of companies GUL is short pay. Someone had sold my mother in law a final expense product when she was in her late 40's early 50's. I 1035 it into a GUL when the policy was about 7 years old, and she got 25k for 10 dollars a month less than the 18k WL. The Gul also would have been guaranteed with no more payments required in like 12-15 years vs a lifetime payment with her old final expense plan. At the time that I sold it to her, anico had a table shave program down to a table 4 for a GUL down to 25k. I don't think that they have that any longer. It has been a long time since I have had someone want something down that low. 25k is really not that much, and there are several companies that offer table shave programs for 100k or greater. Factor in banding, and you get a lot of value on a lot of 100k policies.