No Lapse UL to Age 100?

[KOC Agent]

A bit to broad brush. IMohsoHO

Some people must live in a gated community where every home is pretty much like the other and a HOA tell everyone what the can display in their window and what direction to mow the grass. The majority of us live in a slightly different world.

I have four clients that I am working with today. Two partners (currently 57 and 72) and their spouses. They, and their accountant, have always been Termites. Fast forward 20 years. The six policies they have with me are about $1,400 mo. They also have two Pioneer / One America term plans that term out this month. One goes from $57mo to $450mo ART The other goes from a couple of hundred to something like $14,000mo ART.

They have been clients since 1998. Fast forward to today. Three of the ONL term plans still have about 5 years left on them. However the 72 year old bought a 15 yr term @ T2. (Was not going to need insurance at age 70.) His premium is going from $596 to $7,579mo with no Guarantee. First question both partners asked me is why did we not buy Whole Life. I showed them the quotes I gave them back then and the emails from the accountant. I am quoting Permanent 7 figure policies on the younger couple. The 72 year old? Needs / wants $500,000 10 year term.

Do they have assets? Yes, they own the land, shops and trucks their successful company is on. Not sure if the High Speed Rail is taking the land or not. They are both in $1,000,000 + homes. One of them also owns an auto racing company.

Who am I to lecture them about what they should do? I am their Insurance guy, not their nanny.

In the long run it turns out better for me that they listened to the other Termites.



Oh, I did find the CL quote in the file, Thanks

Side note: These were orphan term clients I serviced, Then converted the $250,000, Then wrote the additional term. The original agent is still in business and has an office a block from these clients. I am two hours from them. And will most likely do all of this business by email, text and phone. Last time I saw them my wife and I got 86'd from Sizzlers, Different story

Good story, I admire your record keeping! Not many would maintain such a detailed file as you did but in hindsight it sure made you look like a professional and that's one of the reasons these folks are "all ears" now.

James

 

[Robert Barney]

And even the example you give is broad.

You talk about these "partners". Is the insurance on that partners to fund a buy/sell agreement or are we talking about their individual insurance policies?

How much longer do they expect this partnership to exist, assuming the 72 year old doesn't die. What if he becomes unable to work, is the younger partner expected to do all the work and the older partner continue to profit?

 

[WinoBlues]

And even the example you give is broad.

You talk about these "partners". Is the insurance on that partners for to fund a buy/sell agreement or are we talking about their individual insurance policies?

How much longer do they expect this partnership to exist, assuming the 72 year old doesn't die. What if he becomes unable to work, is the younger partner expected to do all the work and the older partner continue to profit?

I agree that my example is broad. I do not work in a tightly defined market where everyone is the same. I have to be both flexible and smart enough to know to stay that way.

These are going to be personal insurance.

 

[WinoBlues]

Good story, I admire your record keeping! Not many would maintain such a detailed file as you did but in hindsight it sure made you look like a professional and that's one of the reasons these folks are "all ears" now.

James

The first part of our conversation Wednesday was them asking about my family and if the boys were home yet and safe. Me asking about their son and how the racing was going. Me asking about their dog that tried to bite me when I was at the old shop.

The other service call I did yesterday was similar just way smaller premium. We talked for twenty minutes about how the kids were just teens when I met them and now are grown, Married and parents. Then we covered the policy info on her Ex "cheating SOB" husband. Then we decided that we should look at replacing the Banner term with permanent. BTW, Banner converts to their GUL! When I text the two kids the son hit me back to set up a phone meeting to go over coverages for his family.

I make notes on small things we speak about. The little things seem to be more important than the big things sometimes. " yeah Debbie, I remember that Suzy was a skinny little cheerleader, right? Oh and before Johnny went to play college ball he was jersey number 23 in high school , right?" I know, not very professional. But I have been in shorts and flip flops all week.

 

[GreenSky]

I have been in shorts and flip flops all week.

That visual made me throw up a bit in my mouth.

Rick

 

[WinoBlues]

That visual made me throw up a bit in my mouth.

Rick

And Commando!






















But they were really long shorts.

 

[Robert Barney]

I agree that my example is broad. I do not work in a tightly defined market where everyone is the same. I have to be both flexible and smart enough to know to stay that way.

These are going to be personal insurance.

OK, I thought maybe you were talking about partner insurance.

Most consumers find themselves with less resources than they would otherwise like to have. They can't "have it all". When there are limited resources "opportunity cost" becomes a big thing. A dollar spent on one thing, can't be spent on another. Money spent on insurance cannot be invested. My problem, and I keep stressing this over and over, is "What good is a permanent policy if later you can't afford the premiums and further, need whatever cash has accumulated?"

Statistics, incidentally, show that the majority of such policies never pay a death benefit because they are lapsed. Say what you will, but most permanent insurance is NOT permanent insurance, it is VERY expensive, over priced, term life insurance.

Some people have trouble saying goodbye to their term life insurance. Through the years it becomes a kind of "blankey" or "soother". But if you adopt the idea that term is what you need because your needs will change, you also have to adopt the idea that the day comes when you have to say good-bye, even though it can seem weird to say good-bye. You have to try to eliminate emotion from financial decisions.

My last term product, a 20 year term, which comes up for renewal in August, is going bye-bye. Personally, I'm glad my wife never collected the death benefit.

Buying another term policy at this point would simply diminish resources that would be better invested toward the retirement fund, which if all goes well, I will never have to touch. As I said before, and let me make it clearer, retirement is for fools who can't come to grips with the insurmountable financial mistakes made by politicians who have bankrupted the country. Those chickens will inevitably come home to roost. A person's safest defense is not to quit their day job.

 

[MosesNewmanNAAIP]

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