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Interesting. I wonder if this product would be good for my client I am having trouble getting FE insurance for. He is 82 and on oxygen and has some heart problems. Most GI FE policies only issue up to age 80. Can you email me some info like rates and qualifications on Forethought? Also, don't they have FE products?
my email is [email protected]
Thanks!
It is probably the right product for him but you should just send him to his funeral home to purchase it. They will give him a price guarantee that way. Preneed is very regional so rates and terms will vary and the best companies usually are regional so they are different from state to state.
As a rule of thumb for an 82-year old, just divide whatever coverage amount he wants by 24 and that's his monthly payment and also his same as cash payoff term.
So, if he selects a funeral that costs $7,355 you would have a payment of $306 monthly. If he dies in the first year he has return of premium plus usually around 8% interest. At the 12th month he has 70% coverage ($5,148) and at the 24th month he is fully paid up.
The policy benefit is growing at a rate of around 3.5% so if he lives to age 90 he has a death benefit of $9,685 BUT if he bought it through a funeral home that price guarantees he will save even more if their price raised more than that (they usually do.)
The downside is: Preneed insurance pays very low commission after age 80. You usually have to be contracted with a funeral home to sell it and in some states you have to be a licensed funeral director. A couple of companies that do allow independent agents are FDLIC and NGL but with those companies if you are not with a funeral home you can only sell the single pay versions.
Like I posted earlier, I don't find ForeThought to be competitive in the preneed insurance market any longer. Nor in the FE market.