Can someone advise me on a life insurance need?

[selfgen]

I am a novice with regards to life insurance, I’m usually doing health products. But I have a friend who is a 62 year old male in good health. He’s not overweight at all, good height/weight proportion., non tobacco. He has a mortgage, a family with 3 school age children. He says he wants $500,000 life policy. I’m licensed with Protective Life right now. But I can license with other companies if they have a product that befits his situation. What should I recommend? What product fits here? 20 year term? I would think whole life would be too costly? I would appreciate suggestions and I can provide more info if needed.

 

[fed up]

Ask him what he is looking to protect in the case he does die. 3 school age kids, is he looking to pay for education? He will need much more than 500K. Does his wife work? who will pay mortgage if he dies? Is he looking to cover costs until the mortgage is paid off and the kids are no longer in school? 20 year Term for 500K would cost just a bit less than 1M term for 20 years. why not make sure all debts are covered?

 

[yankee466]

I would start by asking why did he just wake up one morning at age 62 and decided he suddenly needed life insurance. Protective is a good company....and likely in 10 years his need for life insurance will be a lot less than it is now.

 

[selfgen]

Cmon man! He had life insurance through an employer for decades and now he’s leaving his employer.

 

[billyb]

....and likely in 10 years his need for life insurance will be a lot less than it is now.

I have clients with 10 and 20YLT call me every month where their guarante premium period is about to expire and they still need the coverage. Very few have less of a need as they age.

 

[yankee466]

I have clients with 10 and 20YLT call me every month where their guarante premium period is about to expire and they still need the coverage. Very few have less of a need as they age.

very few folk that I run into maintain significant term insurance after the kids are gone and the house is paid for....especially once they quit working past age 65. That of course does not include folk who can not afford to be buried, or high net worth folk with inheritence tax issues to address with permanent insurance. They might be better off spending their money on Long Term care in many cases...so the wife doesn't spend all the kids inheritence in the nursing home some day....wishing her husband had died when his life insurance was still in force.

Not enough detail about the client was given in this post to make serious recommendations. I am guessing the kids will be grown and gone in 10 years....but that is just a guess given his current age of 62. If he can afford a 20Y term at age 62, more power to him. Best case scenario, assuming perfect non-smoker is about $3K/year for $500K - 20Y. A 10Y term would be ~half that. $1M would essentially double these rates, so not sure about the other posters comments. These rates can easily double at Standard NT...so lots of health/etc questions to be asked to determine if Protective is a good choice or not from an underwriting standpoint. He may even want to consider layering two policies if it helps with the rates.

 

[billyb]

You must have a much different clientele than me. I sell lots of term to older ages. Seems like you are never too old to buy a new house with a mortgage. Had more death claims on term policies this year than ever before and most were older clients.

 

[rousemark]

Cmon man! He had life insurance through an employer for decades and now he’s leaving his employer.

I tell people they should not depend solely on life insurance through their employer. Seems that 90% of the time when it is needed they have just quit their job, been laid off or retired and the insurance is not in force. Then, they will be scrambling for coverage at outrageously high prices if they can qualify for it at all. But do they listen?

 

[Allen Trent]

I tell people they should not depend solely on life insurance through their employer. Seems that 90% of the time when it is needed they have just quit their job, been laid off or retired and the insurance is not in force. Then, they will be scrambling for coverage at outrageously high prices if they can qualify for it at all. But do they listen?

Or the worst, they are disabled or terminally ill & lose the job because they go on permanent disability & lose the employer life insurance. Sad, but I have copies of several denied death claims because the person died too slow & job ended.

Personally owned life & SS survivors are the only type that should be relied upon in needed planning. Employer or group life should only be extra as it can't be guaranteed to be there at time of need

 

[WinoBlues]

I have a friend who is a 62 year old male in good health. He’s not overweight at all, good height/weight proportion., non tobacco.

He has a mortgage, a family with 3 school age children.

He has a mortgage, a family with 3 school age children.

He says he wants $500,000 life policy

I’m licensed with Protective Life right now

I have clients that fit preferred in their 60s and 70s.

If he wants $500,000. Show him $500,000. I of course would show other options but $500.000.00 would be the first quote. At 62 probably GUL and term. Sure once he is committed to a plan with you dial down the plan(s) such as combo GUL and term.

Protective would be in the mix. Not the term plan but the Custom Choice UL.
I would run a side by side with Protective 20 and and 15 term next to the lowest guaranteed 20 term. Highlight _ages_ (not year) 82 - 92.

If they choose to buy the other and save the $10. Cool, ink it. But most people will hedge their bet and take the Protective. And it wedges out the internet guy that is selling on strictly price.

I would also have a non med opinion ready. Many guys will pay the difference to have it all done in a week with no intrusive exam and APS. Opposed to waiting 45-60 for FU.

All IMohsoHO