Final Expense Scenario Opinion

jemelton

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I have a guy getting ready to turn 65. He has an optional policy that he took through ford for $176 per month for $100k.
At age 70 it increases to $324 per month and coverage decreases to 75k. At age 75 it goes down to 37500 at an even higher premium.

He is overweight, diabetic, and has had heart issues. I think I can get him an immediate benefit with a FE company but would that be in his best interest? His policy through ford is a ticking time bomb but who knows how long he is going to live.

Any thoughts or suggestions? Thanks in advance.
 
I have a guy getting ready to turn 65. He has an optional policy that he took through ford for $176 per month for $100k.
At age 70 it increases to $324 per month and coverage decreases to 75k. At age 75 it goes down to 37500 at an even higher premium.

He is overweight, diabetic, and has had heart issues. I think I can get him an immediate benefit with a FE company but would that be in his best interest? His policy through ford is a ticking time bomb but who knows how long he is going to live.

Any thoughts or suggestions? Thanks in advance.

GTL has higher amounts of insurance for high risk and can take a lot of people. I don't have the rates in front of me but you can look into it. A lot of FE companies only go to 25k so it limits the amount of companies including conditions of your client makes it even harder. I know there is plenty will take him with a modified benefit along with others that might take his condition with immediate benefit. Monumental comes to mind, RYN possibly depending on the meds and insulin amts he is taking. All these are non med policies. 5 star is another one that might, for sure American Con will take him.
 
I have a guy getting ready to turn 65. He has an optional policy that he took through ford for $176 per month for $100k.
At age 70 it increases to $324 per month and coverage decreases to 75k. At age 75 it goes down to 37500 at an even higher premium.

He is overweight, diabetic, and has had heart issues. I think I can get him an immediate benefit with a FE company but would that be in his best interest? His policy through ford is a ticking time bomb but who knows how long he is going to live.

Any thoughts or suggestions? Thanks in advance.

I did one recently were a UHL 20 year ROP with RDPD at the end made sense. But this guy is to old.

Depending on if he is willing to work with the age 70 premium and or face amount. A tbl rated GUL that allows decreases in face may work. But the danger is in the management of the policy in the future.

If this were my client. I would be quoting against the age 70 numbers. I would lay that policy out to age 85. When does he plan to die or when will the premium be to much to handle? He needs to see the whole picture. Once he points to age XX. Then look for the solution to his problem.
 
I did one recently were a UHL 20 year ROP with RDPD at the end made sense. But this guy is to old.

Depending on if he is willing to work with the age 70 premium and or face amount. A tbl rated GUL that allows decreases in face may work. But the danger is in the management of the policy in the future.

If this were my client. I would be quoting against the age 70 numbers. I would lay that policy out to age 85. When does he plan to die or when will the premium be to much to handle? He needs to see the whole picture. Once he points to age XX. Then look for the solution to his problem.

Age 85 is always a good assuming age since its a 50/50 probability he makes it over that age. Add in the conditions he has makes it more like 70 % he will not make it past that age. It's a great marker since we don't ever know what will happen. I would be wary for doing at GUL as the rates are going up in Jan with many not offering them. I would try to do a term/whole life mix imho if he is looking to keep around 100k for 20 years. 25k whole life 100k 10yr renewable term or go straight 20yr term.
 
I'm thinking he will get a better rate going FE (suprisingly) than going with a fully underwritten plan that's going to be table rated and not make sense....
 
Age 85 is always a good assuming age since its a 50/50 probability he makes it over that age. Add in the conditions he has makes it more like 70 % he will not make it past that age. It's a great marker since we don't ever know what will happen. I would be wary for doing at GUL as the rates are going up in Jan with many not offering them. I would try to do a term/whole life mix imho if he is looking to keep around 100k for 20 years. 25k whole life 100k 10yr renewable term or go straight 20yr term.

85 is probably a stretch. But some people are in denial. I would let him pick the D Day.

Laddering SIterm on a $25,000 FE policy could mirror what he has. Price may be the rub.
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I'm thinking he will get a better rate going FE (suprisingly) than going with a fully underwritten plan that's going to be table rated and not make sense....

Probably correct. If he will go with age 70 numbers.
 
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what companies would do a SI term at that age with those conditions?

Age is not the issue as much as the degree of the conditions. I have gotten type II standard non tobacco (West Coast). And gotten good issues with both Americo and Sagicor.

How over weight and what heart issues and how far back?

SIWL is an answer but not the only answer. Getting to $100,000 with one is going to be pricey.
 
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