Hello men and women here is the situation. 29 and 28 year old couple, he makes six figures and she makes 55-60K. Now these are the details 250,000 house, 1.5mill 30K term policy with ROP with AIG I do believe. She is just determined that they need a final expense policy, he does not think that they do. As far as f.e. what would the top carriers be for a couple this young?
Hello men and women here is the situation. 29 and 28 year old couple, he makes six figures and she makes 55-60K. Now these are the details 250,000 house, 1.5mill 30K term policy with ROP with AIG I do believe. She is just determined that they need a final expense policy, he does not think that they do. As far as f.e. what would the top carriers be for a couple this young?
Hello men and women here is the situation. 29 and 28 year old couple, he makes six figures and she makes 55-60K. Now these are the details 250,000 house, 1.5mill 30K term policy with ROP with AIG I do believe. She is just determined that they need a final expense policy, he does not think that they do. As far as f.e. what would the top carriers be for a couple this young?
With that much coverage in place, I assume her concern is to have the money quickly if they need it for a funeral. They already have plenty of money but it will take 30 to 60-days to get it and can easily take up to 6-months if it's an autopsy case (we have a young one right now that has been dead over 3-months and the doctors won't sign off on the death certificate.)
The best choice for a rapid payoff upon death is Forethought. They also have rates all the way down to age zero. They settle death claims within 48-hours in most cases and do not need a death certificate.
Other choices are out there if rapid settlement is not her concern but if she can wait on the money, what's wrong with the 1.5 mil?
it and can easily take up to 6-months if it's an autopsy case (we have a young one right now that has been dead over 3-months and the doctors won't sign off on the death certificate.)
Then the funeral will take place after they sign ......most funeral company's will work with you....
then the funeral will take place after they sign ......most funeral company's will work with you....
They would in 1990...not in 2008. Funeral homes have trouble getting their money these days. More every day will not accept insurance assignments or waiting on payment. The ones who do will usually charge at least 5% extra for waiting 30-days (that's 60% APR)
IF the policy is assignable, and IF ALL beneficiaries are living and present and able to sign and IF they are willing to pay the fees of an advancing company, they can usually take an advance on the policy.
A whole new industry has opened up to serve this need. Companies that take assignment of insurance policies and advance the money to the funeral homes for a 5% fee. Kind of like the Check N 2 Cash places except for life insurance after a death.
Forethought alone has a complete division that handles advances for other insurance company's life insurance proceeds. At's a big (and getting bigger) business.
My thoughts exactly, her reaction well if we had a seperate "final expense" policy it would just make me feel better. After that statement I look at the husband and he just rolls his eyes.
Am I missing something here? They're grossing $150k and they can't save $20-30k in the bank? WTF?
Oh, yeah, that's right. Gotta go make the Beemer payment!
Yes, you are missing something. Most people in the $150,000 income range are not flush with a lot of cash laying around. That's not the super-rich.
The money they have is invested to try to maximize interest. That usually means it's not readily available for emergency situations.
They can insure themselves for such a low amount at their ages, they want to supplement their temporary "term" insurance with a proper amount of permanent "whole-life" insurance. This is the right thing for them to do. It's your job as an agent to figure out what needs they have for it and the best product for them.
It might be better to have them buy some participating whole-life if they don't mind some underwriting rather than a traditional final expense.
The thing that should open your eyes is; they are recognizing a legit insurance need and you as their agent think they have it covered with their term insurance.
One option I would show them is how you can save them money on regular straight term (no ROP) and sell them the proper amount of whole-life and they would have exactly what they need and probably at the same cost they are already paying or less.
Or they may just want to add the whole-life to what they already have.
From what I read of the original question the wife recognizes that final expense is one slice of the insurance planning pie. They may have enough to pay off the mortgage with the term and maybe pay bills if there is group insurance through work but no funds to bury each other. Permanent whole life coverage works great here! The problem is that the $25,000 policy that is almost twice what they need to cover the funeral now may not be enough at 70 when someone dies. So do you go UL with an increasing death benefit?
From what I read of the original question the wife recognizes that final expense is one slice of the insurance planning pie. They may have enough to pay off the mortgage with the term and maybe pay bills if there is group insurance through work but no funds to bury each other. Permanent whole life coverage works great here! The problem is that the $25,000 policy that is almost twice what they need to cover the funeral now may not be enough at 70 when someone dies. So do you go UL with an increasing death benefit?
You have two questions in one going here. One is about who offers non-senior whole life. The other is about whether that will last over time or get eaten up with inflation. The client sounds like she is a little eccentric and may have her own ideas so all you can do is flop some things out and see if she salutes.
Mutual of Omaha has a whole life express product, simplified issue, up to 25,000, available to younger folks as well.
If she wants something that will keep up with inflation well into her later years, then she just needs to get a small univeral life policy and wire it so that the benefit is the cash value plus the face amount. Or something like that. She sounds a little wacky. I dont completely remember the original post but it sounded like she could already take care of final expenses with her original coverage and then just save some dollars over in annuity and name a beneficiary if she wanted to build a separate little pot over time. Obviously, an annuity is not insurance, but she has insurance and if she died sooner rather than later I dont think her heirs would come up short without the dinky final expense plan, unlike folks who have nothing else going.
My take anyway.
Winter
------------------------------------ The Bolsheviks are dining in the capital.
non senior final expense.
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