Life Insurance Problem

[senior-advisor-indiana]

I sold a couple a med supp today and they asked me to help them with their Life insurance.
He is 72 with COPD and just had a heart attack in april. He has a term policy with AARP paying $300+ per month or quarter, they didn't know. They asked what his options were because they didn't want to pay that much for a poicy that runs out at age 80. I told them to call MOO about their GI product.
The problem.....
If he does go with MOO he has a 2 year waiting period, if he sticks with AARP he could possibly live past 80. I'm not going to recommend them to go one way or the other but what would you guys do?

 

[jdeasy]

I sold a couple a med supp today and they asked me to help them with their Life insurance.
He is 72 with COPD and just had a heart attack in april. He has a term policy with AARP paying $300+ per month or quarter, they didn't know. They asked what his options were because they didn't want to pay that much for a poicy that runs out at age 80. I told them to call MOO about their GI product.
The problem.....
If he does go with MOO he has a 2 year waiting period, if he sticks with AARP he could possibly live past 80. I'm not going to recommend them to go one way or the other but what would you guys do?

That's a tough one. I run into those more than I care to remember. It's most likely $300/qtr on the NYL. I generally tell people to buy the MoO and keep the NYL for the 2 years, but, most can't afford to pay for two policies.

72, COPD and heart troubles? Making it to 80 may be stretch anyway.

 

[senior-advisor-indiana]

That's a tough one. I run into those more than I care to remember. It's most likely $300/qtr on the NYL. I generally tell people to buy the MoO and keep the NYL for the 2 years, but, most can't afford to pay for two policies.

72, COPD and heart troubles? Making it to 80 may be stretch anyway.

Yeah it might be a stretch but I sure wouldn't want to talk to him at age 81 if I recommended him to stay on the NYL. I'd prob have to change my number.

 

[jdeasy]

Yeah it might be a stretch but I sure wouldn't want to talk to him at age 81 if I recommended him to stay on the NYL. I'd prob have to change my number.

One thing you might want to look at is how long he has had the NYL. It's a two year ROP also. If he hasn't had it long it wouldn't that big of a deal to change.

What if he has had it for tow years and you recommend for him to change to the MoO and he dies before the two year period is up? You would have to change your number then too.

The only way to be completely safe is to have both and then cancel the NYL once he makes the two years on the MoO.

 

[senior-advisor-indiana]

Yeah I can't really change my number so my only recommendation will be to get both. I'm sure he has had the NYL than two years though since try said it has increased in price more than once.
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Ok here's another scenario. What if he was 78 and in the same health as I listed bit could only afford one or the other? What would jdesus do ?

 

[Newby]

If he THINKS he is paying $300 per month I would sell him a 3 pay Preneed policy that will have 50% coverage in 6 months and 100% in 12. Problem solved.

The other option is he can convert the AARP term to their Perm policy with GI first day coverage. It will cost more than MOO but probably worth it in this case.

 

[senior-advisor-indiana]

If he THINKS he is paying $300 per month I would sell him a 3 pay Preneed policy that will have 50% coverage in 6 months and 100% in 12. Problem solved.

The other option is he can convert the AARP term to their Perm policy with GI first day coverage. It will cost more than MOO but probably worth it in this case.

Somebody must have stole my pre need policy because I don't see it in my bag.

 

[GreenSky]

Somebody must have stole my pre need policy because I don't see it in my bag.

It's probably in your quiver with the other policy arrows.

Rick

 

[jdeasy]

Yeah I can't really change my number so my only recommendation will be to get both. I'm sure he has had the NYL than two years though since try said it has increased in price more than once.
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Ok here's another scenario. What if he was 78 and in the same health as I listed bit could only afford one or the other? What would jdesus do ?

I just had that case recently. Lady is 78, in a wheelchair, on oxygen, has heart troubles and is an insulin diabetic. She has the AARP NYL that ends at age 80.

I told her to get the MoO and keep the NYL and then when the NYL runs out she would have the MoO. Problem is that she can't afford to do that.

I wish that were a rare instance of seeing something like that. Unfortunately it's not.

 

[Newby]

Somebody must have stole my pre need policy because I don't see it in my bag.

If you can write MOO and make zero I think you could find a funeral home that would give you a split. Or you could always call your buddy down in southern Indiana.

Did you check the rate to convert the AARP policy?