Lump Sum DI or CI Policies

[scagnt83]

Im looking for a lump sum DI or CI policy. I need a minimum of $200k lump sum on a 60 year old n/s in good health.
This could be a true DI policy or a critical illness policy. But it has to last until he is 70 (preferably longer).

Any thoughts on carriers or better yet specific products??

Thanks in advance

 

[somarco]

Just a wag, but you might find something at Petersen.

Doubt you will find a lump sum DI product off the shelf from traditional carriers.

Lump sum CI is a different story.

 

[TXINSURANCE]

I would imagine a lump CI product in that amount at that age would cost a fortune IF you can even find it?

 

[souldeux]

Give me a call/email so I can get a little more info about the client - I've got a couple of CI policies that will work. You said sixty years old, is that nearest or actual?

 

[scagnt83]

I would imagine a lump CI product in that amount at that age would cost a fortune IF you can even find it?

Its not cheap. So far ive looked at premiums $300+/month. He can afford it though.

 

[BNTRS]

Why lump sum DI? Does "this could be a true di policy" mean regular disability income would be workable as well? If so, there are a few carriers that will issue guaranteed renewable non-can policies to age 70. Metlife is the first I can remember off the top of my head, and maybe Principal. However at age 60 he might be in the last year they'd issue a policy if not already past it (possibly age 55 as it is with some of them).

But...

You'll have to do some leg work with benefit periods as he draws nearer to age 70, i.e. on claim at age 69 means benefits get paid for....(how long?)

 

[scagnt83]

But...

You'll have to do some leg work with benefit periods as he draws nearer to age 70, i.e. on claim at age 69 means benefits get paid for....(how long?)

Thats pretty much the problem ive run into.
Construction company owner, planned to retire at 65, now its 70... hopefully...maybe 75.... another victim of the economy.

 

[yankee466]

Thats pretty much the problem ive run into.
Construction company owner, planned to retire at 65, now its 70... hopefully...maybe 75.... another victim of the economy.

Maybe you should consider getting him a Long Term Care plan instead. Its not going to be lump sum, but the overall benefit would be more, the premiums would be lower and also tax deductible. It could be a cash/indemnity LTC plan so you could use it as a form of disability. he is basically getting too old to buy DI and CI, but he is still very young for LTC.

Just a thought.

 

[VolAgent]

Some carriers will write lump sum DI, but they are intended to fund buy/sell agreements. They are fairly pricy, and come with long elimination periods, generally a year or more. If he would prefer a DI, try approaching it from that end. Get him to find a successor, and set up a buy/sell with the DI to fund the buyout.

 

[scagnt83]

Some carriers will write lump sum DI, but they are intended to fund buy/sell agreements. They are fairly pricy, and come with long elimination periods, generally a year or more. If he would prefer a DI, try approaching it from that end. Get him to find a successor, and set up a buy/sell with the DI to fund the buyout.

Thanks, but I have this case taken care of now.

Im aware of the buy/sell DI products and key man DI products, but they are for business situations only, not available for individual markets.

Using this as part of a succession plan is a bit more complicated than we want to deal with. Plus if im not mistaken, those types of policies have to have the business or a sucesser as the beni, it cant be the insured. And this is to protect his income, not the business.

I found a CI policy from AG; it gives him a choice of a lifetime benefit, 30y,20y,& 10y. He is in underwriting now.

I also found a DI policy from Peterson Int. They will cover him until 80 as long as he is still employed with the same company. And the definition of disability is a lot looser than most DI policies.

Thanks for all the suggestions.