Decreasing Term?

[James]

Try to stay focused. You gave the example of someone getting a loan for $1,000,000 and then went on to say that this is a "prime example" of where decreasing term would be ideal or is needed or whatever. I replied that there were no facts in the discussion. What are the rates for this coverage? Lots of shlock companies like Old Mutual offer decreasing term but it is a non-med mortgage type policy so the rates are already at Table D. I would not want to put those rates on a $1000,000 policy particularly if the person is older. Hence, my question about whether there are decreasing term plans that are fully underwritten. I don't know I am asking. If someone recommends DT then they should know the answer and you should not be confused by my asking the question.

When you recommended DT in the example of the $1000,000 loan did you have rates in mind and can you give an example of what those rates would be. Otherwise, the point is meaningless because rates do matter.

Forget about some meaningless retort back to me about my being unable to defend my position or whatever. If you want to advance the discussion put some information with your assertions. Can you give an example of how DT rates fare compared to level term on $1000,000 policy. Choose whatever carriers you want and then we will go from there and see how it looks.

Winter

Okay, I thought AIG had a fully underwritten DT Contract but I can not find it. So it looks like I'm wrong about that, probably why I switch to the 5 year contract or One Term, much easier to quote! Depending upon what carrier you are looking at, NYL, AIG the premiums run about 30-40% less on 5 year with GR then 20 year term contract. Of course the DB will be decrease at time of renewal.

One can go with Mass Mutual a A++ and pay $1060 annually (for 5 years GR) for a 1mill DB, or you can go with another company rated at A++, lets say AG and pay $1530 for the 20 year contract or $1830 if you go with Mass Mutual 20 year plan. This is for a 40 year old standard rates. now at 45 for 5 additional years if needed with reduce DB, lets say 700 grand MM will charge at todays rate $1317 still cheaper then the twenty year plan. If the loan is still going after ten years and about $400 grand left to pay on loan you are looking at a premium of about $1200 from Mass Mutual at age 50 with the same standard rate.

Now in this example I'm use nothing but the best of companies, and the prices reflect that. If you want to use cheaper companies then comparing there rates should be about the same savings if not greater.

 

[somarco]

Disability replaces income, and then, only 60% or so. If you are unable to work you have expenses over & above your regular daily needs.

LTCi can help, some times, but not always. Unless you have a cash benefit policy you may never qualify for benefits.

Life insurance is lump sum, comes without restriction, and is received tax free. It is also more affordable than DI or LTCi for the benefit.

take care,

 

[James]

Disability replaces income, and then, only 60% or so. If you are unable to work you have expenses over & above your regular daily needs.

LTCi can help, some times, but not always. Unless you have a cash benefit policy you may never qualify for benefits.

Life insurance is lump sum, comes without restriction, and is received tax free. It is also more affordable than DI or LTCi for the benefit.

take care,

Well, you don't have to die to collect DI or LTCi.

 

[somarco]

you don't have to die to collect DI or LTCi.

You say that like it's a bad thing . . .

 

[James]

You say that like it's a bad thing . . .

So you use that line in your sales presentations!

 

[Crabcake Johnny]

If it's anything statistically we should all be worried about, it's not more life but DI.

 

[somarco]

So you use that line in your sales presentations!

Sure, don't you?

 

[James]

Sure, don't you?

Well yet I don't sit there and compare DI premiums to the Term premium.

 

[Crabcake Johnny]

Since you're 4 times more likely to be disabled then die before age 65 is it fair to say that everyone should have DI before life insurance?

 

[Newby]

Disability replaces income, and then, only 60% or so. If you are unable to work you have expenses over & above your regular daily needs.

LTCi can help, some times, but not always. Unless you have a cash benefit policy you may never qualify for benefits.

Life insurance is lump sum, comes without restriction, and is received tax free. It is also more affordable than DI or LTCi for the benefit.

take care,

But in the example...death ENDS the financial problem. Disability BEGINS it. What if we were both disabled in the crash? You can't try to cover someone's disability need with a death policy...even if it is cheaper to buy and easirt to sell.

Your example shows the need for good disability and health coverage not death insurance.