Need Client Advice

[2001mason]

Sounds like she may have been stupid for other reasons.. haha..

what about a no lapse Guaranteed UL to age 120? Assuming health is good.

I have never thought of that. I will look into it and then make a suggestion when I speak to her next.
She asked me to call her back today and I did and she was very sick. Sounded horrible. She has a bad cold/flu. She asked me to call her back Tuesday night. Tuesday night I can present to her your suggestion. Thank you.

 

[jdeasy]

I have never thought of that. I will look into it and then make a suggestion when I speak to her next.
She asked me to call her back today and I did and she was very sick. Sounded horrible. She has a bad cold/flu. She asked me to call her back Tuesday night. Tuesday night I can present to her your suggestion. Thank you.

Discussing all of this stuff over the phone if you intend to meet face to face is where most of the problem is.

 

[Robert Barney]

I do not think so. She told me they lost 50k when the market tanked in 07/08. The way she said that, it made it out to seem that they lost their whole investment. She changed the subject rather quickly on this. They are 2-3 years away from paying off their home. Also, they ran their own home remodeling business and they paid more into social security, so they get pretty decent checks now. There was no mention of 401k's, 403b's, IRA's, mutuals or any other type of investment vehicle. She did mention they cashed in their whole life plans a few years back. Anytime after she mentions that, she mumbles stupid a few times. I hope that answered your question.

The house is clearly a significant asset and is certainly available for a loan to pay for a funeral. The first funeral is really the only issue, as the second funeral can definately be funded from the sale of the assets (house) on death of the second person.

I would think a 10 year term would be sufficient. They then need to get busy setting aside their mortgage payments for a rainy day (funeral) after the mortage is paid.

Remember, whole life doesn't change the bill that has to be paid for a funeral, it just changes the way you pay it.

 

[jdeasy]

The house is clearly a significant asset and is certainly available for a loan to pay for a funeral. The first funeral is really the only issue, as the second funeral can definately be funded from the sale of the assets (house) on death of the second person.

I would think a 10 year term would be sufficient. They then need to get busy setting aside their mortgage payments for a rainy day (funeral) after the mortage is paid.

Remember, whole life doesn't change the bill that has to be paid for a funeral, it just changes the way you pay it.

Yeah, that's the ticket. Sell 'em a 10 year term for FE.

 

[VolAgent]

Can someone please point me to the bank that lends on a house when the owner just passed away and it hasn't cleared probate yet?

 

[Newby]

Can someone please point me to the bank that lends on a house when the owner just passed away and it hasn't cleared probate yet?

Believe it or not, some people have tried that "plan."

They end up with a very upset family calling in favors from everyone they know and passing the hat.

 

[VolAgent]

Believe it or not, some people have tried that "plan."

They end up with a very upset family calling in favors from everyone they know and passing the hat.

Yeah, I figured that is what happened.

I love when people try to introduce "math" into insurance. They never seem to include a variable for, what if it goes wrong.

 

[xrac]

A lot of the "planning" is based upon a perfect world.

 

[Newby]

I had an FE appointment last summer who's plan (the husband's anyway) is that she can sell his backhoe when he dies.

Yeah, I bet she knows how to get TOP dollar for that in a distress sale. Probably owes more on it than it will be worth too.

You can't sell life insurance to selfish people. They NEVER understand the need for it.

 

[jtow]

To add a new wrinkle, suggest they look into a reverse mortgage if needed as their house is almost paid, they can setup a prefunded burial (ask Newby) or go with single pay final expense policies.