Client's Wife Died Last Friday

[eagles12]

A long term client contacted me via facebook on the weekend a couple days ago. He asked me to call him. When I called him back, he told me his wife had been killed by a car while she was out jogging . Apparently, she had slipped on a curb and fallen onto the street.I had written policies on both he and the wife.

I notified the insurance company of the pending death claim. They're sending the claim form to him. He's in the process of getting the certified death certificate also. The amount of the claim is $250,000.

Originally ,I wrote the couple policies for 100k mortgage protection each. They decided to apply for higher amounts of term life insurance. The husband was declined due to subsequent substance abuse issues which he disclosed to me.

My concern is that he may have a relapse. I would like to approach him with an idea of putting some of the money into an annuity. Perhaps a SPIA that would provide him a regular income stream. Or a tax deferred fixed annuity.
He is 63 yrs old. He is a salesman Am I being presumptuous?
What would be the best way to approach this ? Thanks.

 

[DHK]

You are not being presumptuous one bit!

First, you know your client best.

Second, your concern isn't about making another sale, but protecting your client from himself from this money. If someone was prone to substance abuse, this kind of money could KILL them.

Here's your remaining problem: Just because the money is in an annuity doesn't mean that he can't liquidate it later and kill himself with drugs anyway.

I once had a client with what I suspect was a gambling problem. I had put about $250,000 401k into a variable annuity IRA. Over the course of the first 2 years, the client liquidated it all... a couple of times by consulting me first... and the rest directly with the company.

We cannot control client actions, but we can document our files and help advise them the best we can.

 

[Larry Tew]

If you don't help him protect the proceeds, someone else will. You be the one.

 

[WinoBlues]

Maybe, since you are having the claim forms mailed to him to figure out before you go sell him.

Maybe he will be referred to a family friend's agent to help with the claim forms. I offer to do that regularly.


Just saying... Control the process.

But I agree that someone should show him his options.

 

[Robert Barney]

He needs to understand how darn little $250,000 is, if he lives another 20 to 30 years.

 

[L5tc]

I'm usually pretty blunt, they do what they do none the less. But I tell them what I think unless they're completely unreasonable.