Looking for a Final Expense Plan That Can Be Writte for Age 86 and Older?

Fourthandgoaldude · 02-19-2009, 09:12 AM

Does anyone know a company that will write a FE plan for those 86 and older. Still run in to someone in this predicament occasionally and would at least like to have an option to present.

Markingriffin · 02-19-2009, 09:39 AM

Let me save you some time. Don't bother. The client has waited too long to buy life insurance. I bet he will wait to wreck the car before he buy car insurance also.

If you found a company that would take him, they would charge him 9,900 for a 10,000 policy.

There is no way for the insurance company to clear a profit at this age.

Example, the client age 86 wants to buy 10,000 worth of life insurance. Lets say that he has 2 years left in him. Which means the company will pay out 10,000 in 2 years. How much money do you think the company should charge him? They would have to take in at least 9,700 to clear a profit. The client will want to give the company no more then 5,000 in the next 2 years and will think the price is too high and will not understand this.

insuranceexec · 02-19-2009, 09:42 AM

Very good point Mark. You also have to consider that the agents wants to recieve a commission. Another good solution for the client is to purchase a SPWL policy. I am pretty sure that Asssurity has one that can be written up to age 90. Correct me if I am wrong, as this is clearly not my area of expertise.

Markingriffin · 02-19-2009, 09:50 AM

Most people that age or older are not in good health.
S.P. have underwriting also.

At that age, if you could do a S.P. he would have to give 9,700 on 10,000. But there are reasons why the client still may want to do this.

Fourthandgoaldude · 02-19-2009, 10:02 AM

Thanks guys... this reaffirms what I should have already known. They have basically waited until it's too late for a plan that would make economical sense.

insuranceexec · 02-19-2009, 10:05 AM

There are several things that can still be done that will make more economic sense. Like an annuity with a guaranteed DB roll-up. Why not give Mark or myself a call; I am sure between the both of us we can come up with something. I hope this helps.

myinsurebiz · 02-20-2009, 01:10 PM

The only reason for this cat to buy spwl is for wealth transfer.

If he's looking for "coverage" - then he might as well go to the funeral home and pre-purchase.

Tom

insuranceexec · 02-20-2009, 02:07 PM

Originally Posted by myinsurebiz

The only reason for this cat to buy spwl is for wealth transfer.

If he's looking for "coverage" - then he might as well go to the funeral home and pre-purchase.

Tom

Which is why I said:

"There are several things that can still be done that will make more economic sense."

G.Gordon · 02-20-2009, 03:55 PM

I actually tried to talk on gentleman out of buying a $5k policy due to the high premiums at age 83. It didn't make sense to me and he'd have to die within 2.5 years or he'd pay more than the policy was worth. He bought anyway and I enjoyed a nice commission.

I flat out told him: "The company is not in this to lose money... they are pretty sure if you can qualify at this age you will live until they have little or nothing to lose."

Newby · 02-20-2009, 05:56 PM

Originally Posted by myinsurebiz

The only reason for this cat to buy spwl is for wealth transfer.

If he's looking for "coverage" - then he might as well go to the funeral home and pre-purchase.

Tom

Most funeral homes will have plans where he can make a VERY high monthly payment but will have a same as cash option for 2-years. So if they can come up with the whole amount within that time frame it does make sense Plus they will get some policy growth.

myinsurebiz · 02-20-2009, 06:28 PM

I agree Scott.

I've actually developed a relationship with a few Funeral Home networks to refer clients to them that don't want traditional Insurance.

Commissions can be substantial for the referral.

Tom

Newby · 02-20-2009, 08:24 PM

Originally Posted by myinsurebiz

I agree Scott.

I've actually developed a relationship with a few Funeral Home networks to refer clients to them that don't want traditional Insurance.

Commissions can be substantial for the referral.

Tom

If they have substancial commissions on an 86 or older person, I'd like to know what product they use. It's pretty slim up in those age ranges. 51-75 is good. Younger or older and it goes way down.

But sometimes it's just the right thing to do.

padthaiforlunch · 04-23-2009, 01:34 AM

Who will write an 81 year old?