Life Insurance Question...

[Fire]

At age 45 most co’s apps and underwriting stricter . I just looked up the rates . Moo for $12 K is $32 a month the same as LBL. Incredible rate for GI.

 

[shonceman]

At age 45 most co’s apps and underwriting stricter . I just looked up the rates . Moo for $12 K is $32 a month the same as LBL. Incredible rate for GI.

Ok, but that MOO rate is for Living Promise, not the GI. Living Promise is Simplified Issue Whole Life. The OP says he’s paying $40 for the GI. As I said, depending on his health situation, he may very well qualify for even a preferred rate with the right Final Expense company. An experienced, independent, Final Expense agent would be better suited to help him with that than MOO’s call center, IMHO.

 

[adjusterjack]

I know the previous poster stated it isn't a good idea to create a beneficiary deed,

Not exactly what I said if you re-read it.

Under most circumstances a beneficiary deed is an excellent idea to avoid having to probate the house. I have one on my house in Phoenix.

 

[Joey Smith]

Not exactly what I said if you re-read it.

Under most circumstances a beneficiary deed is an excellent idea to avoid having to probate the house. I have one on my house in Phoenix.

Sorry for the misunderstanding on my part. I did it for the same reason, to avoid probate.

 

[Newby]

Your paid off house could be your life insurance if you can't get life insurance at a reasonable cost.

Who are your survivors? Pick one you trust. Make a will with instructions to sell the house, pay your funeral bill and other debts and the heir keep the rest.

Avoid the beneficiary deed because that transfers the house to the heir immediately upon death and could leave the estate debt ridden with no money.

Make sure the heir has to probate the house and pay the bills from the sale. An option is that the heir pays the debts and keeps the house.

An estate lawyer will know how to write it up.

They will not be able to sell the house prior to the funeral. And no decent funeral home is going to do the funeral without payment. This is 2021 not 1985.

From what he said he is easily incurable. It sounds like he has been in “do it yourself” mode and has not even spoken with an agent yet. He’s getting “advice” to buy term to cover funeral costs. Lol

Any agent can help this person with a real solution.

 

[Newby]

Thank you for that information. That is re-assuring to know. Last October, I got a pre-need policy through the same funeral home that handled my parent's funerals. About a month after my mother's funeral in 2016, my father went to the funeral home to pre-plan/pre-pay for his services. He asked me to go with him. He was able to pay everything up front in one-lump sum and due to Arkansas' funeral laws, the money for the pre-funding has to be held by an insurance company. My father also, at some point, got an additional $5,000.00 whole-life policy with me as the beneficiary. After my father passed away in 2018, I enquired through the same funeral home about setting up a pre-need policy. Like I said, it goes through a separate insurance company. I wasn't able to pay for everything upfront, so they stretched the payments out over 3 years to where I'm paying $65.05 a month for my pre-planning policy through NGL. I have also made additional payments towards it and it is due to be paid off sometime in 2023. Just recently, I applied for a guaranteed acceptance whole-life policy through Mutual of Omaha, which includes a limited accidental death rider, however, I didn't do enough research on the Mutual of Omaha policy. It has a coverage amount of $12,000.00 (probably too much coverage) with a monthly premium of $40.00. I figured out based on that monthly premium, that I will have paid into the policy the face value by the time I turned 70. My concern with a term-life policy is that the rate would be too high with my pre-existing conditions, even at the age of 45. Not to mention, that when the term expires, my rates will increase due to age and other factors. Anyway, due to the above reasons mentioned, I am second-guessing my decision to go with the Mutual of Omaha policy. As far as my will, that is already in order. I know the previous poster stated it isn't a good idea to create a beneficiary deed, but I did that last year. I'm just trying to fine-tune my estate planning at this point.

The Mutual of Omaha policy sounds like a mistake. That is a policy of last resort sold by mail. You can get lower rates and 1st day coverage if you go through an agent.
Almost ALL states have funeral Preplaning done though insurance policies. That is the safest way to do it. NGL is one of the companies that does that but they don’t offer favorable early payoff terms like many of the others do. Not terrible. But not favorable either.

 

[Allen Trent]

Your paid off house could be your life insurance if you can't get life insurance at a reasonable cost.

Who are your survivors? Pick one you trust. Make a will with instructions to sell the house, pay your funeral bill and other debts and the heir keep the rest.

Avoid the beneficiary deed because that transfers the house to the heir immediately upon death and could leave the estate debt ridden with no money.

Make sure the heir has to probate the house and pay the bills from the sale. An option is that the heir pays the debts and keeps the house.

An estate lawyer will know how to write it up.

Other than the suggestion to talk to an estate lawyer, this is pretty dangerous advice. Forcing something into probate exposes any & all assets to be used to pay creditors who are 1st in line in probate. I have seen many people who had no creditors for many decades end up having large bills from end of life stays in hospitals or nursing homes. Life insurance and any other assets that can name a beneficiary should do so in almost every scenario to make sure the asset goes where intended, not used to pay creditors after probate.

 

[Todd King]

For a couple of reasons. One, I want to make sure my final expenses (funeral, etc.) are taken care of. Secondly, I want to make sure there are enough funds to cover any miscellaneous costs or expenses. I'm not looking to leave a "windfall" to my survivors. Just enough to cover everything involved with taking care of expenses related to a funeral, etc.

By the way, what are your (or other's) thoughts on those pre-need plans that funeral homes offer? My father had one through our local funeral home. The policy actually goes through an insurance company since the state I live in doesn't allow a funeral home to accept/hold on to money for a future funeral.

Also, I'm on a limited income and wondering what my options would be.

DHK advised that you give me a call. Please see my contact number below.

 

[Joey Smith]

Ok, but that MOO rate is for Living Promise, not the GI. Living Promise is Simplified Issue Whole Life. The OP says he’s paying $40 for the GI. As I said, depending on his health situation, he may very well qualify for even a preferred rate with the right Final Expense company. An experienced, independent, Final Expense agent would be better suited to help him with that than MOO’s call center, IMHO.

When I looked into MOO initially, I was quoted the $32.00 rate for $12,000.00 coverage, but when I spoke ro a representative to sign-up, it ended up being $40.00 per month. I initially signed-up with MOO, but have since cancelled and signed-up with an insurance company that provides more coverage that starts day one.

 

[titeye]

When I looked into MOO initially, I was quoted the $32.00 rate for $12,000.00 coverage, but when I spoke ro a representative to sign-up, it ended up being $40.00 per month. I initially signed-up with MOO, but have since cancelled and signed-up with an insurance company that provides more coverage that starts day one.

It was recommended that you reach out to Todd. Why not just give him a call to confirm the action you have taken is best?