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I met a 73 yr old gentleman on Saturday who has an old policy with a 10K death benefit and an outstanding loan he says that is nearly that much. He is not in a position to repay the loan. He has buried his wife and a son in the past couple of years and really wants to have 10k left to the family to pay for his final expenses.
His current premium is $123 a month. I can write him a new 10k policy for $124 a month.
Seems to me the loan will practically wipe out any death benefit on his existing policy, and he would be better off with a new policy. I don't think he would have much taxable gain from the cash value/loan.
Am I correct that a new policy would be his best solution? If it is, I am going to meet with him and call his current carrier to verify the info for his policy get the details on his loan. What are the pertinent questions we need to ask?
His current premium is $123 a month. I can write him a new 10k policy for $124 a month.
Seems to me the loan will practically wipe out any death benefit on his existing policy, and he would be better off with a new policy. I don't think he would have much taxable gain from the cash value/loan.
Am I correct that a new policy would be his best solution? If it is, I am going to meet with him and call his current carrier to verify the info for his policy get the details on his loan. What are the pertinent questions we need to ask?