Have client whose 78 year old mother is putting down 100k on a home for his family. The siblings will get less of inheritance because of this. So the client is interested in insuring the mother so inheritance is same, so no siblings feel slighted. Any advice on best product available for this situation and how would it work? Thanks
Is 100k on 78 Year Old Female Possible?
- Thread starter Go Green
- Start date
Best product is relative. You can get term, but that doesn't make any sense. I would think a good GUL or whole life is their best option. For one of the lowest price WL on the market and if she qualifies, I would go with RNA, although 100k is going to cost a lot.
Preferred Non-Tobacco $462.23
Standard Non-Tobacco $531.66
Super Preferred Non-Tobacco $432.13
I don't do much with GUL's, but I would think that would be the better and cheaper option.
- 614
North American Custom Guarantee (based on ipipeline quote engine)
PB: $336
PFD: $365
Standard: $409
PB: $336
PFD: $365
Standard: $409
- 2,452
Equitable...
- 2,455
Well the siblings would have to split the 100k so first I would figure out what my share was and insure her for the difference.
So if my mom were to leave 100k for me and my sister yet I wanted or needed the all the money now then I would insure the mother for 50k not 100k if it meant getting what I wanted NOW and made a deal possible.
So my point is, are you or they figuring the correct dollar amount of insurance? All they really need to do is insure the mother the amount of the inheritance which is the amount of money once this sibling subtracts his amount. We might only be talking about 50k now.
If there is more than 100k in the estate, premiums from the estate could be used to fund the policy and premium amounts could be shifted (add money to other siblings so they get their money back) to the other siblings inheritance upon death of the insured which would be another option. This way the current estate is paying the premiums not the sibling looking to get the money.
So if my mom were to leave 100k for me and my sister yet I wanted or needed the all the money now then I would insure the mother for 50k not 100k if it meant getting what I wanted NOW and made a deal possible.
So my point is, are you or they figuring the correct dollar amount of insurance? All they really need to do is insure the mother the amount of the inheritance which is the amount of money once this sibling subtracts his amount. We might only be talking about 50k now.
If there is more than 100k in the estate, premiums from the estate could be used to fund the policy and premium amounts could be shifted (add money to other siblings so they get their money back) to the other siblings inheritance upon death of the insured which would be another option. This way the current estate is paying the premiums not the sibling looking to get the money.
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- 586
In a situation like this, it would definitely be in everyone's best interest for you to extensively shop this case. Also might want to feel out the son to see if these kinds or premiums are going to be realistic before you go wasting all day working this case.
I would get as much health info as possible from her. The son might not know/ have it all.
Also with a 78 year old your probably going to have a lot better luck with carriers with a little higher premiums and more liberal underwriting. Even is she doesn't know or remember chances are very high there's something lurking in her aps/ blood work.
WCL/Pruco might be good options for you.
I would get as much health info as possible from her. The son might not know/ have it all.
Also with a 78 year old your probably going to have a lot better luck with carriers with a little higher premiums and more liberal underwriting. Even is she doesn't know or remember chances are very high there's something lurking in her aps/ blood work.
WCL/Pruco might be good options for you.
- 24,940
Yes this type of situation is done often. Same in a business situation where one sibling will get the business and another will get the insurance benefit.
I have had good out comes with Genworth GUL , on older clients also.
Nice case.
I have had good out comes with Genworth GUL , on older clients also.
Nice case.
I'm not arguing the value of the life insurance, but....., trying to be practical....
If the estate has enough value, why not just have this sibling use the value of the note as the first part of the inheritance? If there are 3 siblings, and the estate is worth $300K, he would get his note paid off, the other 2 would get their $100K and all is even.
Basically, the note is part of the estate still, the estate is not worth less because of it. Or is it a gift? If it is, and if I remember my gift tax rules correctly (no guarantees), this could be a bad thing....
Dan
If the estate has enough value, why not just have this sibling use the value of the note as the first part of the inheritance? If there are 3 siblings, and the estate is worth $300K, he would get his note paid off, the other 2 would get their $100K and all is even.
Basically, the note is part of the estate still, the estate is not worth less because of it. Or is it a gift? If it is, and if I remember my gift tax rules correctly (no guarantees), this could be a bad thing....
Dan
My guess is that if they need momma to put $100K on the house that they cannot afford a $400 per month premium.
- 2,455
I don't understand why they need to insure for 100k?
If he is entitled to 1/2 the hundred anyway say, than why not just insure for 50k?
If he is entitled to 1/2 the hundred anyway say, than why not just insure for 50k?
