FE For Age 86??????

[JoeInsurance]

Does anyone have a FE carrier that will cover a healthy 86 year old Ohio applicant?

 

[Mark]

This subject has come up a couple of times.

It is hard to find a company to take a client that old and if you do he don't want to pay what it cost to take him.

Example 86 year old guy has at best what 2 years in him. If he wants a 10,000 policy he will have to at least pay them 8,000 for it.

My short answer is he waited to long to buy insurance.

 

[Newby]

This subject has come up a couple of times.

It is hard to find a company to take a client that old and if you do he don't want to pay what it cost to take him.

Example 86 year old guy has at best what 2 years in him. If he wants a 10,000 policy he will have to at least pay them 8,000 for it.

My short answer is he waited to long to buy insurance.

Here's the best option they are going to get.

Tell them to go to a funeral home and find one that offers 24-month same as cash payoff option. Many do.

Then they set up the policy on either a 3-year or 5-year payment plan BUT they want to exercise their 24th month option (unless they are terminally ill at the 24th month.

SO they should just divide their coverage amount by 24 and that is the payment they should make. They will have full coverage on the balance if they die from the very first payment but their goal is to pay it off and be self-insured.

The advantage to the consumer is; 1. they have virtually free coverage on the balance for the two years that they are making payments. 2. They get around 3% growth added to the face amount of the policy each year as additional death benefit. 3. The funeral home will (usually) price guarantee the funeral based on the policy plus the growth which assures the client that they will not leave anything to pay for the surviving family. 4. These policies pay off immediately upon death. (Usually within 24-hours and no death certificate is needed.) 5. These policies are usually exempt from medicaid or other government benefit programs and are not counted as an asset (the cash value of most whole-life insurance counts against you.)

The down side is; These policies pay very minimal commission on an 86 year old. You usually have to work for a funeral home to sell them.

 

[JoeInsurance]

Thanks guys. You bring up both valid points & good ideas. My prospect is actually 85 . . . until this coming Monday. Her daughter is trying to get $5k coverage in place for her at the last second. Unfortunately, Mom is vacationing in Puerto Rico and won't be back until Mid April. She is active, healthy & sharp. Oxford has a good rate for her, ($59.98/mo) - and based on her health, I'm sure that I could get her written if she were here. Unfortunately, I can't write sight unseen.

 

[Winter_123]

Thanks guys. You bring up both valid points & good ideas. My prospect is actually 85 . . . until this coming Monday. Her daughter is trying to get $5k coverage in place for her at the last second. Unfortunately, Mom is vacationing in Puerto Rico and won't be back until Mid April. She is active, healthy & sharp. Oxford has a good rate for her, ($59.98/mo) - and based on her health, I'm sure that I could get her written if she were here. Unfortunately, I can't write sight unseen.

Her nearest age is 86 right now. Will Oxford take an 86 year old nearest age person? I don't know. I am asking.

 

[JoeInsurance]

I believe that Oxford uses attained age rather than nearest age.

 

[oicu812nbama]

you can back date him with Lincoln Heritage phx,az. if the geezer dies in the first year you will get charged back. lol

 

[jdeasy]

you can back date him with Lincoln Heritage phx,az. if the geezer dies in the first year you will get charged back. lol

LH never charged me back for deaths in the first year.

 

[Newby]

LH never charged me back for deaths in the first year.

He's probably talking about Lincoln Heritage Pre-need. It charges back during the first year (pro-rated months 7-12 though.)

Back dating is something all the pre-need agents do to save age. It makes sense to back date a few months and pay a few extra payments down if you are going to pay a limited number of payments anyway. It doesn't work if you're on a lifetime payment plan because you would just be paying extra payments.

 

[insuranceexec]

Here's the best option they are going to get.

Tell them to go to a funeral home and find one that offers 24-month same as cash payoff option. Many do.

Then they set up the policy on either a 3-year or 5-year payment plan BUT they want to exercise their 24th month option (unless they are terminally ill at the 24th month.

SO they should just divide their coverage amount by 24 and that is the payment they should make. They will have full coverage on the balance if they die from the very first payment but their goal is to pay it off and be self-insured.

The advantage to the consumer is; 1. they have virtually free coverage on the balance for the two years that they are making payments. 2. They get around 3% growth added to the face amount of the policy each year as additional death benefit. 3. The funeral home will (usually) price guarantee the funeral based on the policy plus the growth which assures the client that they will not leave anything to pay for the surviving family. 4. These policies pay off immediately upon death. (Usually within 24-hours and no death certificate is needed.) 5. These policies are usually exempt from medicaid or other government benefit programs and are not counted as an asset (the cash value of most whole-life insurance counts against you.)

The down side is; These policies pay very minimal commission on an 86 year old. You usually have to work for a funeral home to sell them.

Great advice Newby. I thank you for taking the time to post; you have taught me something.