Guaranteed Policy for a 20 Yr Old.

[rmiller]

Hey Insurance Man, What is the name of the insurance company that you use to write GI policie ages 0 to 85 yrs old? As for as the preneed policies, they have a quote with a funeral home and wanting to look at their options. Thanks for everyone's help.

 

[degsey69]

He would qualify for a funeral Preneed policy from a lot of different companies. And no he doesn't need to answer any health questions.

You have to work with a Preneed agent on it. Feel free to call me if you don't have a connection to one.

If he does not have the ability to contract for himself because of mental incapacity how does a preneed policy cover it. The only company I know who does these is Columbian.

 

[Newby]

If he does not have the ability to contract for himself because of mental incapacity how does a preneed policy cover it. The only company I know who does these is Columbian.

Columbian, Forethought, Homesteaders, NGL, Homesteaders, Monumental, American Memorial, FDLIC, Lincoln Heritage, Cincinnati Equitable, Atlantic Coast, Investors Heritage, etc. All have funeral Preneed insurance.

They all work the same way. You choose to pay over 3, 5 or 10 years. You have an increasing benefit whole life policy. No health questions at all and they all have 70% coverage after 12 months and 100% after 24.

The insured does not have to sign or even be aware of the policy. Any immediate family member can buy it on him.

 

[jdeasy]

Columbian, Forethought, Homesteaders, NGL, Homesteaders, Monumental, American Memorial, FDLIC, Lincoln Heritage, Cincinnati Equitable, Atlantic Coast, Investors Heritage, etc. All have funeral Preneed insurance.

They all work the same way. You choose to pay over 3, 5 or 10 years. You have an increasing benefit whole life policy. No health questions at all and they all have 70% coverage after 12 months and 100% after 24.

The insured does not have to sign or even be aware of the policy. Any immediate family member can buy it on him.

You are talking to a captive agent that has more options than an imdependent agent.

 

[degsey69]

You are talking to a captive agent that has more options than an imdependent agent.

You are darn right there

I can also spell independent correctly as well.

 

[jdeasy]

You are darn right there

I can also spell independent correctly as well.

Well goody for you. if you know so much why didn't you know about all the companies that Newby posted?

Just another clueless spammer.

 

[Rearden]

Newby -- I've run into these 3-, 7-, and 10-pay type programs sold by the local funeral homes.

What I've seen is basically the payer pays in roughly twice of what the insurance is worth -- at least concerning the 10-pay programs.

I don't understand -- what's the advantage to offering something like that versus your standard FE policy?

I looked at a prospect's 10-pay setup with American Memorial. Just looked like your standard 10-pay SIWL type of product, as concerning cash value, etc.

Thanks!

 

[nfl72]

I believe UHL GI starts out at 45

 

[Newby]

Newby -- I've run into these 3-, 7-, and 10-pay type programs sold by the local funeral homes.

What I've seen is basically the payer pays in roughly twice of what the insurance is worth -- at least concerning the 10-pay programs.

I don't understand -- what's the advantage to offering something like that versus your standard FE policy?

I looked at a prospect's 10-pay setup with American Memorial. Just looked like your standard 10-pay SIWL type of product, as concerning cash value, etc.

Thanks!

The 10-pay is usually a bad deal unless they are real young when they start it. The key thing with pre-need policies is the policy growth.

Say if they start it as a $10,000 policy and it has 3.5% annual growth. By year 10 their policy will be worth around $13,500 and by year 20 it would be $17,000 or more (more if the growth is compounding.) They also have a price guarantee from the funeral home which usually is worth much more than the policy face amount.

They work this way regardless of how they pay the premium.

If they single pay it...they always come out ahead. If they pay off within 24 months they pay the same amount as a single pay with most companies. So that is the best option.

Once they go further than that you have to do the math. There can be a period of several years where they are upside down on the policy BUT the longer they live the more the policy grows so it will eventually be worth more then the premiums paid in most cases.

Most pre-need companies allow catch-up premiums. SO if someone is paying on a 10-year payment but wants to pay off in year 3 or 5 they can lump sum the amount to catch up and they will save thousands of dollars over paying over 10-years.

Also with pre-need insurance EVERYONE is covered by at least 70% by the 12th month and there are NO health exceptions to that...NONE. They can be under hospice care, in prison, have AIDS, Cancer AND kidney dialasis. Some companies even cover everyone quicker than 12-months. In the old days ForeThought covered everyone 50% on DAY ONE with no exceptions. I don't know how they did that but it was that way for around 10-years.

Compare that for a regular FE. They usually pay premiums for life. Once they have paid in more than the face amount, they will never recover and will never come out ahead.

There is a place for both types of coverage. But for educated consumers it usually comes down to more affluent people buy pre-need and pay it off quickly. Less affluent people buy lifetime pay FE. And middle class go with all sorts of combinations of each.

 

[WinoBlues]

You are darn right there

I can also spell independent correctly as well.

That is funny ""Sadly there are one or two who you can only right their products such as AGLA. "" from your other threat post.
Pot meet Kettle.