Burial Policy

[Coloradoskier]

My client has been suffering from COPD/Emphysema. Sadly, she won't live long, I would say a couple more years. She wants to buy a FE policy as soon as possible. She is at age 55. Any insurance company that you recommend? Thank you very much in advance.

 

[Newby]

My client has been suffering from COPD/Emphysema. Sadly, she won't live long, I would say a couple more years. She wants to buy a FE policy as soon as possible. She is at age 55. Any insurance company that you recommend? Thank you very much in advance.

TransAmerica, Liberty Bankers, KSKJ, would be three that are good with COPD. But if she takes oxygen she needs to go all the way to guaranteed issue. Gerber or great western would be good choices for those.

 

[billyb]

Assurity will write her if she doesn't smoke.

 

[Robert Barney]

Has anyone thought to encourage her to pre-arrange her funeral, to minimize costs?

 

[Ksutton]

Has anyone thought to encourage her to pre-arrange her funeral, to minimize costs?

I never advise any clients to pre pay funerals - I think it's best for the client to have a policy (as long as they are insurable) and pay a monthly rate , rather than pay thousands of dollars upfront . The cash could come In handy, especially for any medical bills that may pop up.

 

[Coloradoskier]

Thank you, guys. I am new to this industry. I totally appreciate your advice. Yes, she takes oxygen with her COPD. As such, I talked with two major insurance companies, and they all rejected her completely due to her oxygen issue. As you guys suggested, I will check out some guaranteed issue policies for her. Happy Holidays!!!

 

[sirherbie]

Write snl graded . Nice commish ,great price and no charge backs for death

 

[Newby]

I never advise any clients to pre pay funerals - I think it's best for the client to have a policy (as long as they are insurable) and pay a monthly rate , rather than pay thousands of dollars upfront . The cash could come In handy, especially for any medical bills that may pop up.

Prepaid funerals are paid monthly too. But if she is really terminally ill it can give her a lot more benefit if she dies early in the policy.

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Has anyone thought to encourage her to pre-arrange her funeral, to minimize costs?

Good idea. If she is terminally ill that can be her best option.

 

[Ksutton]

Prepaid funerals are paid monthly too. But if she is really terminally ill it can give her a lot more benefit if she dies early in the policy. ---------- Good idea. If she is terminally ill that can be her best option.

I agree that if she is terminally ill it may be the best option. But if she is insurable I believe a policy is the best way to go . If she does the day after issue her family gets the full benefit amount . If she dies after one payment to the funeral home ... Well her family gets that one payment .

 

[Newby]

I agree that if she is terminally ill it may be the best option. But if she is insurable I believe a policy is the best way to go . If she does the day after issue her family gets the full benefit amount . If she dies after one payment to the funeral home ... Well her family gets that one payment .

You must have been trained by Tim Winders. Tim's a great guy but he explains PreNeed wrong because "It ain't his job to teach the competitor's product. "

Here is how it really works. Let's assume they are looking at a $10,000 PreNeed policy or FE policy.

If the person is healthy and they make one payment on either one, the full $10,000 is the death benefit. The pre-need policy would have a higher monthly premium than the FE but both cover $10,000 if they died after paying the 1st premium.

But this person is not healthy. They are on oxygen. So they are GI.

So with the PreNeed or the FE policy, if they die during the first 12-months they only get return of premium plus interest. But at month 13 the PreNeed has the advantage. It's now got a death benefit of $7,000 and the FE only has ROP. At the 25th month they are evened up again and both policies pay the full $10,000. The FE policy has a much lower premium. The PreNeed policy has growth of the death benefit. So at this point it pays more than $10,000. It would be closer to $11,000.

The PreNeed policy would hit it's upside down years (pain in more in premiums than the death benefit around year seven but is paid in full at year 10. The upside down goes away around the 15th year and then they come out more ahead the longer they live.

The FE policy doesn't go upside down until around the 15th year or more but once it does they never go back and the person loses more money the longer they live due to the lifetime payment option.

Both types have their advantages. If we knew exactly how long everyone would live we could always give perfect advice.