GUL market for age 68 and 62

[blue_wynd]

So I have an age 62 nearest mom and 68 nearest dad. Son is the owner and beneficiary. He is getting the policy and paying for it. Face amount is $500k each. Current life carrier will only do $150k since the parents just got their green card recently and don't have assets in the US. Life carrier won't count their overseas assets. The parents income isn't enough to justify the 500k face value they want. Apparently another broker say they have a carrier, maybe Nationwide that can do the 500k and don't ask about the parent's income. Only the son's income and his paying ability? They just need a joint account together to pay the premiums out of. He wants to get the policies with me and I need a carrier that can do the $500k face amount.

Which life carrier can do a GUL and don't ask the parents income? His view is he is paying it, he is the beneficiary, why do the carrier care about his parent's income. I don't do too much life and trying to find another market here before he goes elsewhere.

 

[Tahoe Ray]

If he wants to get the policies with you and what the other broker says is accurate, maybe just get contracted w/ Nationwide yourself and write it...

 

[Pirate91]

They ask about income for the express purpose of determining life value. Wouldn't want to see someone make $8/hr get whacked because some insurer slapped $500k in life insurance on 'em.

 

[Allen Trent]

Only need to watch a few episodes of dateline nbc to see murder for the life policies.

Just because the son wants to benefit from his parents eventual death doesn't mean the carrier will be a party to it.

Without a big reason for how he is harmed financially when they die, he doesn't have much insurable interest to be the owner & bene of a policy on them. If he was merely the pay or for a breadwinning parent to provide insurance to a beneficiary with more insurable interest, they might allow more coverage

 

[fed up]

Keep the son out of discussions until you get the policy issued. Mom and Dad purchase their own policies with kid as beneficiary. After policy is issued transfer ownership to son. If they can't get 500K from one company, stack 3, 150K policies from other carriers and then again transfer ownership to son

 

[Pirate91]

Keep the son out of discussions until you get the policy issued. Mom and Dad purchase their own policies with kid as beneficiary. After policy is issued transfer ownership to son. If they can't get 500K from one company, stack 3, 150K policies from other carriers and then again transfer ownership to son

And leave off the fact that they have the other policies? Interesting "method".

 

[Allen Trent]

And leave off the fact that they have the other policies? Interesting "method".

MIB hits will show the other policies or applications.

 

[fed up]

And leave off the fact that they have the other policies? Interesting "method".

Policy questions are , Is there any other policies in force. Are you using other policies to pay for this one. I never said don't disclose but you can have multiple policies from different companies

 

[Allen Trent]

Keep the son out of discussions until you get the policy issued. Mom and Dad purchase their own policies with kid as beneficiary. After policy is issued transfer ownership to son. If they can't get 500K from one company, stack 3, 150K policies from other carriers and then again transfer ownership to son

Some carriers apps/rep reports ask if you are aware of any details that would cause a rating or decline. Knowing a carrier will decline if son is owner & bene might require that to be a yes answer if it is asked.

Lastly, ownership changes to life policies can have some tax consequences under the transfer for value IRS regs if the ownership change doesn't satisfy one of the 3-5 exceptions. If it fails to meet one of those exceptions, the entire death benefit is taxable to the beneficiary.

 

[Robert Barney]

And leave off the fact that they have the other policies? Interesting "method".

Yikes. Well said. Be transparent in life insurance applications. Apart from the 2 year contestability provision, you still have the fraud provision which I think opens the door up to a denial of claim payment. Do not give the company an out. And if a claim is denied, you'll be going to court.