2yr ROP or AARP?

[gordon112]

Question 11b clearly asks about alzheimers.

You conveniently left out the rest of the application.

Once diagnosed with Alzheimer's it is a graded or ROP modified. Never ran into a company that would take them immediate.

My best bet for this client is Gleaner life which is a graded death benefit and the rates are about the same as MOO GI.

 

[jdeasy]

Once diagnosed with Alzheimer's it is a graded or ROP modified. Never ran into a company that would take them immediate.

My best bet for this client is Gleaner life which is a graded death benefit and the rates are about the same as MOO GI.

That's what I figured but he is claiming that they will do immediate benefit.

 

[lsalmans]

That's what I figured but he is claiming that they will do immediate benefit.

JD you conveniently didn't read my explanation of the application. The first 2 sections is the BMS plan. The Alzheimer questions falls in the their 3rd tier. So you can not get their preferred rate with Alzheimer. However, their BMS plan is an Immediate death benefit. I worked for Old American for 2 years. They cover this condition. I remember vividly asking the chief underwriter at the convention about Alzheimer's. As of 2 years ago they were covering this condition. According to my agent and friends still with the company, they haven't changed their procedure with this. Old American feels like they are screening bad cases of Alzheimers by the ADL question and POS process.

 

[VolAgent]

Im going to go over this option with her (convert it to AARPs UL) and see what she wants to do. My job is to provide the best options for her & give her my opinion, but she must decide for herself...I will tell her that converting is probably the best option given her situation, if she cant afford both for 2yrs!

You do realize that any company you submit to will probably reject the replacement? You are trying to replace full benefit with return of premium. If the company gets the statement from the old company, they should reject it to avoid liability on themselves.

 

[jdeasy]

JD you conveniently didn't read my explanation of the application. The first 2 sections is the BMS plan. The Alzheimer questions falls in the their 3rd tier. So you can not get their preferred rate with Alzheimer. However, their BMS plan is an Immediate death benefit. I worked for Old American for 2 years. They cover this condition. I remember vividly asking the chief underwriter at the convention about Alzheimer's. As of 2 years ago they were covering this condition. According to my agent and friends still with the company, they haven't changed their procedure with this. Old American feels like they are screening bad cases of Alzheimers by the ADL question and POS process.

I didn't skip your explanation. I want to see where it says that on the application. I don't believe for a second that OA will knowingly take alzheimers clients on an immediate basis.

 

[jacobtn]

You do realize that any company you submit to will probably reject the replacement? You are trying to replace full benefit with return of premium. If the company gets the statement from the old company, they should reject it to avoid liability on themselves.

Are you familiar with how the replacement process works? I've never heard of a company that just cancels a inforce policy because they receive a replacement form. the client has to notify the carrier in writing to do that and then they have to process the request.

 

[WinoBlues]

Are you familiar with how the replacement process works? I've never heard of a company that just cancels a inforce policy because they receive a replacement form. the client has to notify the carrier in writing to do that and then they have to process the request.

He is talking about the new company rejecting the new app. Replacing Level insurance with a Graded/Modified plan. May take more documentation.

 

[VolAgent]

Are you familiar with how the replacement process works? I've never heard of a company that just cancels a inforce policy because they receive a replacement form. the client has to notify the carrier in writing to do that and then they have to process the request.

What Wino said. The new company doesn't have to issue a policy. If they feel the replacement is inappropriate they may refuse or require more documentation.

 

[GoCubsGo]

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.

I have a copy of the AARP Permanent Life rates and ap. It says "rates are guaranteed never to go up for any reason" and "premiums are guaranteed not to increase - ever". Group ins, simp issued, level, no waiting period with term ill/nursing home rider. Three question ap. Two year look back on illnesses. It does require no hospitalization in last two years and no doctor visits, treatments or tests in last 3 months. Rates are not bad.

56 year old ns male, 10k:

AARP 38.81 mo

Oxford 32.33
RNA 34.81
Americo 37.48
Monumental 37.70

AARP does not ask about tobacco so they will kick butt on smokers. AARP knocks a dollar a month off rate if you do bank draft so they must do direct bill. Unless you find a nonsmoker who just took out the policy I can't see replacing this for a few bucks in savings and starting a new contest period unless I'm missing something. Forget about smokers.

 

[jdeasy]

I have a copy of the AARP Permanent Life rates and ap. It says "rates are guaranteed never to go up for any reason" and "premiums are guaranteed not to increase - ever". Group ins, simp issued, level, no waiting period with term ill/nursing home rider. Three question ap. Two year look back on illnesses. It does require no hospitalization in last two years and no doctor visits, treatments or tests in last 3 months. Rates are not bad.

56 year old ns male, 10k:

AARP 38.81 mo

Oxford 32.33
RNA 34.81
Americo 37.48
Monumental 37.70

AARP does not ask about tobacco so they will kick butt on smokers. AARP knocks a dollar a month off rate if you do bank draft so they must do direct bill. Unless you find a nonsmoker who just took out the policy I can't see replacing this for a few bucks in savings and starting a new contest period unless I'm missing something. Forget about smokers.

That must be something new from them. Even at their website it says "premiums are not guaranteed".