I Believe Whole Life/universal Life is a Waste

60 year old Female Non Tobacco with Transamerica

Has the following
COPD
Diabetes
High Blood Pressure
Skitzophrenic

25,000 - $104 Monthly
20,000 - $83.90
15,000 - $63.80
10,000 - $43.70

If they're on insulin, along with the COPD, that would knock it down to graded.
 
25,000 - $104 Monthly

$104 X 12 = $1,248

$25,000 / $1,248 = 20

My main concern is this, will this person be able to keep paying the premiums?

Age 60, not yet retired. Once retired, what will income be?

Income per month = Income per month minus $104

Spoke to a lady like this not long ago. Told me she had NO MONEY for a funeral wanted a policy. I questioned her about her assets: nothing. No car, no house. Working and earning $60,000 per year. I asked when she was going to retire. She thought in about 5 years. I asked about her pension income, it was going to be a drastic reduction. I asked how she was going to afford the policy she was thinking about buying, when it was clear she was going to struggle to put food on the table.

I then suggested, before she bought the policy, that she should sit down and talk about it with her children. I pointed out that while she didn't want to stick them with a funeral, that she might want to ask if they wanted her to buy a policy given that they were going to end up supporting her in retirement and that the only way she would be able to keep the policy is if they took it over.
 
$104 X 12 = $1,248

$25,000 / $1,248 = 20

My main concern is this, will this person be able to keep paying the premiums?

Age 60, not yet retired. Once retired, what will income be?

Welcome to my world. lol :cool:

Yes, she will be able to keep up the premium payments once you have found an amount that she can afford. I would have suggested she pay a lower amount and not gotten the kids involved.

Her retirement income will be less, that is another reason to show her options UNDER $100 and lock her in where it doesn't hurt! Even after retirement a $60 commitment is totally doable for this chick.
 
$104 X 12 = $1,248

$25,000 / $1,248 = 20

My main concern is this, will this person be able to keep paying the premiums?

Age 60, not yet retired. Once retired, what will income be?

Income per month = Income per month minus $104

Spoke to a lady like this not long ago. Told me she had NO MONEY for a funeral wanted a policy. I questioned her about her assets: nothing. No car, no house. Working and earning $60,000 per year. I asked when she was going to retire. She thought in about 5 years. I asked about her pension income, it was going to be a drastic reduction. I asked how she was going to afford the policy she was thinking about buying, when it was clear she was going to struggle to put food on the table.

I then suggested, before she bought the policy, that she should sit down and talk about it with her children. I pointed out that while she didn't want to stick them with a funeral, that she might want to ask if they wanted her to buy a policy given that they were going to end up supporting her in retirement and that the only way she would be able to keep the policy is if they took it over.

Gee.. You just made the case for buying some WL when a person is younger... When they get to retirement age, they can stop paying premiums and take a reduced paid up amount of insurance that will be paid up for the rest of their lives no matter how long they live.

Have been at this since 1971 and not one time have I had a person tell me, "I sure am glad that I bought term insurance and invested the difference." But there have been many that have said, "I wish I had bought more permanent insurance." I have even said it myself... Folks who bought term and those who minimum funded their ULs. tend to have a bitter opinion about what was sold them years ago. :1frown:
 
This part here...

$104 X 12 = $1,248

$25,000 / $1,248 = 20

And this part...

My main concern is this, will this person be able to keep paying the premiums?

Age 60, not yet retired. Once retired, what will income be?

Income per month = Income per month minus $104

Spoke to a lady like this not long ago. Told me she had NO MONEY for a funeral wanted a policy. I questioned her about her assets: nothing. No car, no house. Working and earning $60,000 per year. I asked when she was going to retire. She thought in about 5 years. I asked about her pension income, it was going to be a drastic reduction. I asked how she was going to afford the policy she was thinking about buying, when it was clear she was going to struggle to put food on the table.

I then suggested, before she bought the policy, that she should sit down and talk about it with her children. I pointed out that while she didn't want to stick them with a funeral, that she might want to ask if they wanted her to buy a policy given that they were going to end up supporting her in retirement and that the only way she would be able to keep the policy is if they took it over.

Have nothing in common.

Why did you do a "break even" analysis to determine if the policy is sustainable?

What does that have to do with anything?

Either the policy is affordable, or it isn't.

Either the policy is a priority, or it isn't.

Never, ever, EVER make a decision for the client. Yes, show your concern and yes, show the analysis... but always let the client make their own decisions.

If a policy becomes unaffordable in the future, you worry about it then.

Reduced-paid up options, dividend offset (if possible), or having current beneficiaries pay to keep the policy in force... are all possible options.
 
Have been at this since 1971 and not one time have I had a person tell me, "I sure am glad that I bought term insurance and invested the difference."

OK, put me down as number one.

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Why did you do a "break even" analysis to determine if the policy is sustainable?

To underscore that nothing is for nothing. It's not the wonderful deal it is being painted as.

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Either the policy is affordable, or it isn't.

You are asking someone to make a lifetime financial commitment, when you should know better than anyone else that she is on the verge of a significant change in her financial income. Not pointing that out is irresponsible.

Either the policy is a priority, or it isn't.

Which begs the questions, who sees it as a priority?
 
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