Maximum Death Benefit?

[Mick_Keyou]

I have a prospect looking for a 2 million dollar 30 year term policy.

26 years old.
Single & no kids.
Salary: 90k
She rents but is looking to buy.
Lives in San Fran with a high cost of living.
**I'm waiting for her to reply with any debt information as well as who will be the beneficiary.

She wants to know what her maximum death benefit that she can qualify for.

Any help would be appreciated.

 

[WinoBlues]

I have a prospect looking for a 2 million dollar 30 year term policy.

26 years old.
Single & no kids.
Salary: 90k
She rents but is looking to buy.
Lives in San Fran with a high cost of living.
**I'm waiting for her to reply with any debt information as well as who will be the beneficiary.

She wants to know what her maximum death benefit that she can qualify for.

Any help would be appreciated.

Each company will have a factor based on age. At certain amounts it will also require financials.

26 could be an issue, however income easily justifies it, Single no kids or mortgage could be an issue. If she has a long time partner that could help, Is anyone dependent on her?

A good cover letter will go a long way. Just need to build a case for the underwriter. Oh, and who is going to be the bene? Insurable interest?

 

[DHK]

ANICO would underwrite 20x-30x her income. $90k x 30 = $2.7 million

Assurity would also underwrite adults up to age 30 for 30x income.

Just check your carrier's underwriting manuals to verify maximums based on age and earnings.

 

[Tahoe Ray]

That's not a crazy multiple for under 40 but these:

Each company will have a factor based on age. At certain amounts it will also require financials.

26 could be an issue, however income easily justifies it, Single no kids or mortgage could be an issue. If she has a long time partner that could help, Is anyone dependent on her?

A good cover letter will go a long way. Just need to build a case for the underwriter. Oh, and who is going to be the bene? Insurable interest?

Will all need to be addressed...

 

[WinoBlues]

That's not a crazy multiple for under 40 but these:



Will all need to be addressed...

Hey! That's what I said.

 

[Mick_Keyou]

Thanks for the info fellas. I'm waiting on her beneficiary info as well as her financials.

I gave her the basic reply that each company will look at her financial situation, but 25x her income for her age was a possibility.

Thanks again!

 

[UW Guy]

I have a prospect looking for a 2 million dollar 30 year term policy.

26 years old.
Single & no kids.
Salary: 90k
She rents but is looking to buy.
Lives in San Fran with a high cost of living.
**I'm waiting for her to reply with any debt information as well as who will be the beneficiary.

She wants to know what her maximum death benefit that she can qualify for.

Any help would be appreciated.

As long as her job/income make sense and there's no other in force most big boy carriers won't bust your chops for $2M with this much info present. As long as she hasn't been bankrupted recently it shouldn't be too harrowing. Even on a 20-25 multiple she gets to $1.8 to 2.25M.

 

[Josh]

Any idea why she's looking for that much coverage? Not saying it isn't a good idea, but a single 26 year old with no kids wanting over 2 million in coverage does seem a little odd. I doubt this is it, but one of the members here had someone buy a policy and at the like 25 month mark committed suicide. Again, I doubt that's what's afoot here, but as exciting as the commission on this would be I'd wonder what the motivation for this is.

 

[DHK]

Plus, doing a little "reverse selling" is great to ensure that it is up to them and their motivations, not just a great commission and their trust in you.

The more they "own" the decision, the more committed they'll be in keeping the policy active.

 

[Tahoe Ray]

Hey! That's what I said.

More work than a thumbs up but needed be reiterated...