- 439
Well if that 87 yr old decides they no longer want the policy, than 30% is much better than the CSV.
Life Insurance for over 75?
- Thread starter TonyC
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Well if that 87 yr old decides they no longer want the policy, than 30% is much better than the CSV.
- 2,152
That does depend upon the policy. Yet the bene's loose in the deal, obviously the 87 yr old brought that policy for something or someone at one time. Plus just how many 87 yr olds out there have convertable term that has not yet been converted?
- 439
You are right, I doubt the policy was a term policy, probrobly a UL.
I'm sure the 87yr old did buy it for something, but you do not know his situation. Maybe he out lived all the bene's. Maybe the bene's are making a very good living and the policy holder would rather pay for his grandkid's college today than wait for the death benefits. Maybe he wants to move into that fancy new retirement building or buy long term care insurance instead. There are a thousand senarios when a life settlement makes sense for a client and a thousand senarios when a life settlement is the wrong choice for the client. That is why most brokers work with the clients agent or advisor to make sure that doing a settlement or not doing a settlement is a good choice for the client.
- 2,152
Obviously it would have to be a UL or WL. More than likely a UL, since it was the UL that given birth to the Life Settlement. I suppose the Insurance Carriers were asking for it, the UL being basically a bad choice compared to the WL. With that said, outside of not being able to afford the UL premium at the age of 87, I really can't see a life settlement being a good educated decision.
- 149
Let me run through a scenario where it would makes sense....the is an actual case we are working on.
We have an 84 year old female with a 1.6mm face policy. Her premiums where 25k/year and are rising to 87k/ year. She has a 87k cash value. We will probably be able to Life Settle the policy for somewhere between $600k-$900k. We then premium finance a new policy for $1.6mm and use the settlement proceeds to pay the interest on the financing. (exit strategy in this case is death). There are obviously a million moving parts to this example but it is an interesting case non the less.
We have an 84 year old female with a 1.6mm face policy. Her premiums where 25k/year and are rising to 87k/ year. She has a 87k cash value. We will probably be able to Life Settle the policy for somewhere between $600k-$900k. We then premium finance a new policy for $1.6mm and use the settlement proceeds to pay the interest on the financing. (exit strategy in this case is death). There are obviously a million moving parts to this example but it is an interesting case non the less.
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- 16,907
If they want final expense type of insurance they can.
75 year olds can get pre-need funeral insurance with no problem at all. Healthy or not. Most will cap the starting amount at $25,000 but the death benefit will increase each year.
If you can't find anything yourself, talk to the insurance agent at your local funeral home. He can help you and will probably work a split deal with you.
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