2yr ROP or AARP?

[TDFnCali]

How would u advise a client (I know its ultimately their decision) that has an existing $10k Term plan with AARP with 1 more increase (at 75) thats shes had for 7yrs VS a 2yr ROP WL plan (mild Alzheimer's now) thats $30 more then her current payment?

I gave her all the pros & cons, and told her that in my opinion term is never good but since it wasnt 1st day coverage & she was going to have to wait 2yrs to be fully covered she wanted to have a few days to think it over. She told me if it was immediate coverage, it would be a no brainer, so she understood why WL was better!

But what would u say to that client & how would u guys advise??

 

[jdeasy]

How would u advise a client (I know its ultimately their decision) that has an existing $10k Term plan with AARP with 1 more increase (at 75) thats shes had for 7yrs VS a 2yr ROP WL plan (mild Alzheimer's now) thats $30 more then her current payment?

I gave her all the pros & cons, and told her that in my opinion term is never good but since it wasnt 1st day coverage & she was going to have to wait 2yrs to be fully covered she wanted to have a few days to think it over. She told me if it was immediate coverage, it would be a no brainer, so she understood why WL was better!

But what would u say to that client & how would u guys advise??

I would advise her to convert her AARP/NYL term to AARP/NYL's "permanent" coverage.

 

[pcbinsurance]

You concerned me at "mild alzheimers". Tread carefully.

When she tells you something is a "no brainer", she might be telling you that literally.

 

[TDFnCali]

I would advise her to convert her AARP/NYL term to AARP/NYL's "permanent" coverage.

But isnt that a UL & prices arent guaranteed on that either? How can I talk about how bd it is to have increasing term prices & put her into another policy that can increase too??

Im ignorant on AARP's "permanent" plan!

 

[jdeasy]

But isnt that a UL & prices arent guaranteed on that either? How can I talk about how bd it is to have increasing term prices & put her into another policy that can increase too??

Im ignorant on AARP's "permanent" plan!

Yes, it's a UL and the rates are not guaranteed but it's beter than the term and she is already out of contestability.

You are talking about taking her from a policy that would pay full benefit if she died tomorrow to a policy that wouldn't pay for two years. I can't see any way that would be in her interest to change.

I hate the AARP/NYL crap but sometimes it's the best for the situation. Those times are rare but this seems to be one of them. All it takes is a phone call for her to convert to the permanent plan. The rates will be higher than her term but it won't end at age 80 either.

I also belive that she can't convert it if she waits until after age 75. Now is the time.

Your question was "how would u advise?" I would advise to convert with her current company.

 

[TDFnCali]

Yes, it's a UL and the rates are not guaranteed but it's beter than the term and she is already out of contestability.

You are talking about taking her from a policy that would pay full benefit if she died tomorrow to a policy that wouldn't pay for two years. I can't see any way that would be in her interest to change.

I hate the AARP/NYL crap but sometimes it's the best for the situation. Those times are rare but this seems to be one of them. All it takes is a phone call for her to convert to the permanent plan. The rates will be higher than her term but it won't end at age 80 either.

I also belive that she can't convert it if she waits until after age 75. Now is the time.

Your question was "how would u advise?" I would advise to convert with her current company.

Ok thx, will take that under consideration!

 

[WinoBlues]

Ok thx, will take that under consideration!

JD is advising doing the right thing. No brainer.

 

[SportsNut]

The only other consideration might be... (and it probably isn't as good as converting the AARP/UL), depending on her budget... is for her to keep her current AARP term for two yrs, while she takes a modified plan (guaranteed prem) from you today. Once the 2yr ROP period has lapsed then she could cancel the term product. Weigh the cost of doing so all combined; if the conversion to UL now is far cheaper, and it likely would be, then that is her game plan. Absent her being able to convert for any reason then the two layered policies might be the next best approach... if budget allows.

But, never, ever replace an immediate benefit policy with a modified or even graded plan. That could end up in you finding out just how good your E&O covg might be.

 

[jacobtn]

is she being treated for alzheimers, or is just forgetful? there is a difference, although I agree you should be careful here. I would recommend she keep the AARP for 2 yrs until the one you sell her is in force, unless she can qualify for level coverage (doesn't sound like she can). Of course cost may prohibit this!

I had a situation just like this awhile back. The guy had the income to afford both, but ultimately decided to lower his coverage on his term AARP by about 5k to help offset the cost on the WL I sold him until the 2 yrs passed and he could drop the term.

 

[WinoBlues]

is she being treated for alzheimers, or is just forgetful? there is a difference, although I agree you should be careful here. I would recommend she keep the AARP for 2 yrs until the one you sell her is in force, unless she can qualify for level coverage (doesn't sound like she can). Of course cost may prohibit this!

I had a situation just like this awhile back. The guy had the income to afford both, but ultimately decided to lower his coverage on his term AARP by about 5k to help offset the cost on the WL I sold him until the 2 yrs passed and he could drop the term.

Did they know that they could convert? I did not know they could lower the face on AARP.