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I was talking to a client this week and he said that his grandson came back from school that day with a flier about this insurance. I guess some agent was able to give out packets to every kid in school. 
AfterThoughts
- Thread starter somarco
- Start date
- 15,319
It's quite simple how this works. I have spent some time with the creator of the policy and was able to get a GA contract.
Here's how it works:
Think of a whole life policy that instead of paying the death benefit immediately, pays at least a guaranteed rate of interest each year. To pay $100 annually at 3% interest, you need a death benefit of $3,333.
This $3,333 will pay $100 (minimum) forever. So to answer the question, the birthday present and more importantly that birthday card, is mailed annually to the beneficiary forever. Upon the beneficiaries death - which should be 60 years or more later - the proceeds will be paid.
The 3% is simply a guarantee. Current interst is 3.5%.
The concept is terrific. Grandparents want to be remembered. So upon their death, the designated grandchild will receive a birthday card and a small check ($100, 250, 500, etc) every year. So that at least once a year, that grandchild will remember that their grandparent loved them so much that this reminder was arranged.
I think this is so cool and will be moving much of my focus to this. I expect to contact Churches and arrange seminars for their senior groups. (Sorry Frank, their RAISEN groups.)
Rick
- 2,152
Here is a Clue from Blues Clues!
Those nasty smelling, slow walking, slow driving people that cut you off every day of the week! They are also known to go around saying "but I'm on a fix income!". Get it yet???
