Get multiple FE policies?

Jul 1, 2019

  1. J2727
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    J2727 Super Genius

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    Nope.
    Good income, but no savings and still has a mortgage.
    Many bad financial decisions.

    He has another life policy in place, but it's going to expire. He can extend it, but at a much higher rate.
    That was the point of trying to get a smaller Term policy, but he doesn't qualify.
    So, I'm looking at multiple FE policies to try and get something if he doesn't extend the current policy. I don't think it'll be as much as is needed, but at least it'll be something.

    It's to protect the wife. If he passes away without paying off the mortgage, she could at least sell the house, buy a smaller place (with no mortgage), and still have some money leftover for a SPIA, investing, etc.
     
    J2727, Jul 2, 2019
    #11
  2. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Who's your upline? :shocked:
     
  3. Tahoe Ray
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    Tahoe Ray Guru

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    What carrier is this other policy with? If it's still convertible, you may be able to do a partial conversion so that he has something permanent in place. If he was in good health originally, it may end up being more cost effective than his other options.
     
  4. J2727
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    J2727 Super Genius

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    Premier.

    I've never done FE so I'm new to it.
     
    J2727, Jul 2, 2019
    #14
  5. J2727
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    J2727 Super Genius

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    Forgot what carrier it's with.

    That's the plan.
    It's for $1.5M, but he doesn't need that much now.
    He can continue it, but It would also be around $10K/year to do so.
    If he can continue it a smaller death benefit of around $500K and the cost around $4K/year, that would be preferable.
     
    Last edited: Jul 2, 2019
    J2727, Jul 2, 2019
    #15
  6. Tahoe Ray
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    Tahoe Ray Guru

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    I thought you were originally talking about re-entry premiums as opposed to conversion. Several of the big name carriers allow partial conversions so hopefully that works for you.
     
  7. J2727
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    J2727 Super Genius

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    I'm sorry, let me clarify.

    He has the option to continue the Term policy, not convert it to a permanent policy.
    That's what he told me. I haven't seen the contract. He was supposed to email it to me.

    It could actually be a conversion option as opposed to continuation. I won't know until I see the contract.

    However, even if it was conversion to permanent, he doesn't want a permanent policy. He would stop paying for it as soon as he didn't need it anymore.
     
    J2727, Jul 2, 2019
    #17
  8. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    They should be able to help you and guide you since you're new. Quite a few FE companies have Single Premiuum. :yes:

    I'm pretty sure that everybody stops paying for it when they don't need life insurance anymore. :twitchy:
     
  9. rousemark
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    rousemark Still Here!

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    I have no idea what they pay for a term policy but has he considered a viatical settlement for the $1.5M term... Would be better than dropping it and getting nothing out of it. If the payment is enough, he might use that money to buy the single pay life and have some coverage with nothing out of pocket.
     
  10. J2727
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    J2727 Super Genius

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    I know about viatical settlements. I don't know if they also apply to term policies.

    If they don't apply to term policies, but he can convert the policy to a permanent policy, then it's an option.

    I'll look into it either way.

    Thanks for the suggestion.
     
    J2727, Jul 3, 2019
    #20
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