74 Year Old Female $50,000 In WL

[jdeasy]

Wow...she had about 10 different offers for insurance in the mail. Some were term (AARP) which is convertible at age 80 to fully paid up whole life. I don't think it is a bad product, but I have found most clients don't really understand what they are buying. The $50,000 of term at $183 seemed kind of high anyway.
- - - - - - - - - - - - - - - - - -


Wow...she had about 10 different offers for insurance in the mail. Must of had something to do with her cancelling her $500,000 term for $500/month that was coming to the end of term, Some were term (AARP) which is convertible at age 80 to fully paid up whole life. I don't think it is a bad product, but I have found most clients don't really understand what they are buying. The $50,000 of term at $183 seemed kind of high anyway.

The AARP term does not convert to whole life at age 80. It teminates at at age 80 and day. No coverage at all, no cash value, it's over.

They can convert it at a higher price to their UL but I believe they have to do that before age 75. I would have to check that.

 

[HoosierLife]

The AARP term does not convert to whole life at age 80. It teminates at at age 80 and day. No coverage at all, no cash value, it's over.

They can convert it at a higher price to their UL but I believe they have to do that before age 75. I would have to check that.

I just had a guy that was 74 and was getting ready to buy their product, knowing the price was gonna jump in a year. He knew about converting it, and he seems to think he would just have to do it before 80. That was my first week in the field, so I think he knew more about it at that time then I did, but I didnt know anything about the 75 age issue. That's important to know I think.

 

[jdeasy]

I just had a guy that was 74 and was getting ready to buy their product, knowing the price was gonna jump in a year. He knew about converting it, and he seems to think he would just have to do it before 80. That was my first week in the field, so I think he knew more about it at that time then I did, but I didnt know anything about the 75 age issue. That's important to know I think.

That might not be right. That's why I said I would check the policy. I know they won't sell the UL past age 75 and that may be where I got that.

It's possible they can convert it to the UL all the way to age 80. It's still a conversion and you have to do it and pay for it. It does not automatically to convert to a paid up whole life as was stated.

 

[Newby]

- - - - - - - - - - - - - - - - - -

Wow...she had about 10 different offers for insurance in the mail. Must of had something to do with her cancelling her $500,000 term for $500/month that was coming to the end of term, Some were term (AARP) which is convertible at age 80 to fully paid up whole life. I don't think it is a bad product, but I have found most clients don't really understand what they are buying. The $50,000 of term at $183 seemed kind of high anyway.

That is completely wrong. The AARP plan never converts to paid up whole-life. It does the opposite. It makes them buy a different plan if they want to continue coverage after age 80. Not only is it not paid up, it's WAY more expensive.

 

[Raider123]

That is completely wrong. The AARP plan never converts to paid up whole-life. It does the opposite. It makes them buy a different plan if they want to continue coverage after age 80. Not only is it not paid up, it's WAY more expensive.

Its possible the client i was honking about was younger but AARP gave him the option of a whole life policy with no underwriting. For the amounts of coverage and monthly payment it was a good deal because he had some health issues since.

 

[jdeasy]

Its possible the client i was honking about was younger but AARP gave him the option of a whole life policy with no underwriting. For the amounts of coverage and monthly payment it was a good deal because he had some health issues since.

They don't have a policy that's immediate coverage with "No" underwriting.

They do have a whole life life plan now that's just been rolled out. The rates are not terrible for smokers although certainly very beatable. For non smokers the rates are terrible.

Their no, {actually very little}, underwriten plans are 2 year ROP plans.

Age down't matter. If they are of age to get the AARP/NYL then they only have the same offerings. Except that their "permanent" plans are not available after age 75.

 

[Newby]

Its possible the client i was honking about was younger but AARP gave him the option of a whole life policy with no underwriting. For the amounts of coverage and monthly payment it was a good deal because he had some health issues since.

You were calling it paid up. Paid up means you no longer have to pay premiums.

They have an option to convert to the full coverage universal life plan at a higher premium with no health questions. Sometimes that is an OK option if they have really bad health. It's not whole life though unless it was recently changed.

 

[jdeasy]

You were calling it paid up. Paid up means you no longer have to pay premiums.

They have an option to convert to the full coverage universal life plan at a higher premium with no health questions. Sometimes that is an OK option if they have really bad health. It's not whole life though unless it was recently changed.

You know that's a good question. They only had term and UL before and all you could convert to was the UL. Now that have this whole life I wonder if you can convert to it?

And, if we are talking about conversion, then there are no medical questions to convert. I thought he was saying they were offering new coverage with no underwriting.

 

[Raider123]

That is completely wrong. The AARP plan never converts to paid up whole-life. It does the opposite. It makes them buy a different plan if they want to continue coverage after age 80. Not only is it not paid up, it's WAY more expensive.

Misspoke yes it is convertible to WL, but not paid up WL. It ended up being 50k of term ending at age 80 which was then convertible to WL. I don't remember what the underwriting was on the term product.

 

[jdeasy]

Misspoke yes it is convertible to WL, but not paid up WL. It ended up being 50k of term ending at age 80 which was then convertible to WL. I don't remember what the underwriting was on the term product.

It's not convetable to whole life. It converts to their UL.