Guaranteed Issue Final Expense

[theinsuranceman]

With preneed the questions are only for immeadiete benefit. You can jst put an X over the questions if you don't want to use them. The policy will still be issued and they will still have 70% at the 12th month. No exceptions.

I call that true guaranteed issue.

How can these preneed co.'s stay in business? Seems like they would lose their shirt, unless premiums are high enough to justify 70% at month 12.

 

[jemelton]

With preneed the questions are only for immeadiete benefit. You can jst put an X over the questions if you don't want to use them. The policy will still be issued and they will still have 70% at the 12th month. No exceptions.

I call that true guaranteed issue.

Tell me more, how do I get contracted, how much does it pay?

 

[jdeasy]

With preneed the questions are only for immeadiete benefit. You can jst put an X over the questions if you don't want to use them. The policy will still be issued and they will still have 70% at the 12th month. No exceptions.

I call that true guaranteed issue.

Yes, I agree that those are GI.

 

[Newby]

How can these preneed co.'s stay in business? Seems like they would lose their shirt, unless premiums are high enough to justify 70% at month 12.

They are priced high compared to FE. The premiums are only paid for 3, 5, or 10-years. If someone is ages (60-80) they will likely pay twice the face amount if they pay it over 10-years. Most don't do that. They pay it off within 24 months which is the same as cash. Many people single pay the whole policy.

The preneed policies grow each year to keep up with inflation. With FE if they live too long, they will be upside down (paid in more than their death benefit)

With preneed (if they stay on payments and don't use their early payoff option) the upside down part is in the middle years. If they die early in the contact they save through the death benefit. If they live a long time they save because they paid the policy in full and lived more years and the policy grew to more than they paid in. If they die towards the end of the payments or soon after paid off they usually are upside down in the payments. They can avoid this alltogether buy paying off early.

Most people that preplan are healthy. The ones that are terminally ill have a great death benefit after 12-months so if they didn't do it when they were healthy, they definitely should then.

Chargebacks are 100% for 6-months. Prorated months 7-12.

The bottom line is: People who have the means to single pay the fneral or pay it in full within a few years usually benefit by preplanning. Also terminally ill people benefit by preplanning.

People who can't afford to pay it off are usually better off with FE ESPECIALLY if they are healthy and don't smoke. If they can only qualify for Americo FE's GI policy for instance they will pay about the same premium as a preneed policy but have a WAY longer waiting period for coverage, NO policy growth and it's NOT ever paid up. Which would you choose?

All you have to do is contract with a funeral home to sell it. You have to have some training because you have to obey funeral laws as you are actually selling a guaranteed funeral contract along with the insurance to fund it.

Lincoln Heritage has a preneed product if you are interested. You should see if they will connect you with a local funeral home and expand your offerings.

 

[TRSecurity]

The only true GI whole life plans I know of are MoO and Americo's UIII. Neither ask any questions at all except for, how will you pay for this?

Everyone else asks some other questions or have conditions in the agent guide that they will not accept.

Tell me what I am missing on the Columbian GI policy. They do require a SS#. It is also modified DB. No questions or conditions that I am aware of. Is this not a true GI?

 

[theinsuranceman]

They are priced high compared to FE. The premiums are only paid for 3, 5, or 10-years. If someone is ages (60-80) they will likely pay twice the face amount if they pay it over 10-years. Most don't do that. They pay it off within 24 months which is the same as cash. Many people single pay the whole policy.

The preneed policies grow each year to keep up with inflation. With FE if they live too long, they will be upside down (paid in more than their death benefit)

With preneed (if they stay on payments and don't use their early payoff option) the upside down part is in the middle years. If they die early in the contact they save through the death benefit. If they live a long time they save because they paid the policy in full and lived more years and the policy grew to more than they paid in. If they die towards the end of the payments or soon after paid off they usually are upside down in the payments. They can avoid this alltogether buy paying off early.

Most people that preplan are healthy. The ones that are terminally ill have a great death benefit after 12-months so if they didn't do it when they were healthy, they definitely should then.

Chargebacks are 100% for 6-months. Prorated months 7-12.

The bottom line is: People who have the means to single pay the fneral or pay it in full within a few years usually benefit by preplanning. Also terminally ill people benefit by preplanning.

People who can't afford to pay it off are usually better off with FE ESPECIALLY if they are healthy and don't smoke. If they can only qualify for Americo FE's GI policy for instance they will pay about the same premium as a preneed policy but have a WAY longer waiting period for coverage, NO policy growth and it's NOT ever paid up. Which would you choose?

All you have to do is contract with a funeral home to sell it. You have to have some training because you have to obey funeral laws as you are actually selling a guaranteed funeral contract along with the insurance to fund it.

Lincoln Heritage has a preneed product if you are interested. You should see if they will connect you with a local funeral home and expand your offerings.

Thanks for a good answer.

 

[WinoBlues]

Tell me what I am missing on the Columbian GI policy. They do require a SS#. It is also modified DB. No questions or conditions that I am aware of. Is this not a true GI?

If you are talking about the Columbian MDO it has some "this plan is not intended" verbiage on page 2 under "Underwriting" about confinement , terminal illness and intravenous drugs.