Im looking for a lump sum DI or CI policy. I need a minimum of $200k lump sum on a 60 year old n/s in good health.
This could be a true DI policy or a critical illness policy. But it has to last until he is 70 (preferably longer).
Any thoughts on carriers or better yet specific products??
Give me a call/email so I can get a little more info about the client - I've got a couple of CI policies that will work. You said sixty years old, is that nearest or actual?
Why lump sum DI? Does "this could be a true di policy" mean regular disability income would be workable as well? If so, there are a few carriers that will issue guaranteed renewable non-can policies to age 70. Metlife is the first I can remember off the top of my head, and maybe Principal. However at age 60 he might be in the last year they'd issue a policy if not already past it (possibly age 55 as it is with some of them).
But...
You'll have to do some leg work with benefit periods as he draws nearer to age 70, i.e. on claim at age 69 means benefits get paid for....(how long?)
------------------------------------ If you want to be rich you must follow one simple rule...do what rich people do.
You'll have to do some leg work with benefit periods as he draws nearer to age 70, i.e. on claim at age 69 means benefits get paid for....(how long?)
Thats pretty much the problem ive run into.
Construction company owner, planned to retire at 65, now its 70... hopefully...maybe 75.... another victim of the economy.
Thats pretty much the problem ive run into.
Construction company owner, planned to retire at 65, now its 70... hopefully...maybe 75.... another victim of the economy.
Maybe you should consider getting him a Long Term Care plan instead. Its not going to be lump sum, but the overall benefit would be more, the premiums would be lower and also tax deductible. It could be a cash/indemnity LTC plan so you could use it as a form of disability. he is basically getting too old to buy DI and CI, but he is still very young for LTC.
Some carriers will write lump sum DI, but they are intended to fund buy/sell agreements. They are fairly pricy, and come with long elimination periods, generally a year or more. If he would prefer a DI, try approaching it from that end. Get him to find a successor, and set up a buy/sell with the DI to fund the buyout.
Some carriers will write lump sum DI, but they are intended to fund buy/sell agreements. They are fairly pricy, and come with long elimination periods, generally a year or more. If he would prefer a DI, try approaching it from that end. Get him to find a successor, and set up a buy/sell with the DI to fund the buyout.
Thanks, but I have this case taken care of now.
Im aware of the buy/sell DI products and key man DI products, but they are for business situations only, not available for individual markets.
Using this as part of a succession plan is a bit more complicated than we want to deal with. Plus if im not mistaken, those types of policies have to have the business or a sucesser as the beni, it cant be the insured. And this is to protect his income, not the business.
I found a CI policy from AG; it gives him a choice of a lifetime benefit, 30y,20y,& 10y. He is in underwriting now.
I also found a DI policy from Peterson Int. They will cover him until 80 as long as he is still employed with the same company. And the definition of disability is a lot looser than most DI policies.
Im aware of the buy/sell DI products and key man DI products, but they are for business situations only, not available for individual markets.
Using this as part of a succession plan is a bit more complicated than we want to deal with. Plus if im not mistaken, those types of policies have to have the business or a sucesser as the beni, it cant be the insured. And this is to protect his income, not the business.
I found a CI policy from AG; it gives him a choice of a lifetime benefit, 30y,20y,& 10y. He is in underwriting now.
I also found a DI policy from Peterson Int. They will cover him until 80 as long as he is still employed with the same company. And the definition of disability is a lot looser than most DI policies.
Thanks for all the suggestions.
No problem. No idea why it showed up as recent as it was so old, didn't look at the date.
But you are right about the arrangement. They tend to want the person who is going to take over the firm to be the bene, that way they can buy out the owner. That said, what is he going to do with the business at retirement, leave it to his children? If so, it is still not a bad idea. If he does become disabled, his children get the company at an increased cost basis.
No problem. No idea why it showed up as recent as it was so old, didn't look at the date.
But you are right about the arrangement. They tend to want the person who is going to take over the firm to be the bene, that way they can buy out the owner. That said, what is he going to do with the business at retirement, leave it to his children? If so, it is still not a bad idea. If he does become disabled, his children get the company at an increased cost basis.
Yeah, the highlighting of threads have been kind of screwed up lately...
Dont get me started on this jokers business transition... lol
There is so much he needs to get in order its rediculous! And he is one of these "well lets wait until this is finalized before we talk about anything else.." kind of guys... and not the brightest when it comes to financial matters.
Personally he needs to consolidate his multiple ULs that are starting to fall apart.
With the business he needs a full fledged succession plan.
The 401K is mis-structured as well, and he is getting money back at the end of the year.. so it needs to be re-structured.
They also need key man policies for multiple people...
He has a partner whom I just met the other week. Hopefully I will get the two together in a month or two and lay out all of the problems along with their solutions. Im getting a feeling like this 50% partner does about 20% of the decision making for the financial aspects of the business... lol
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