Out Of My Realm - Need Advice?

Nov 17, 2008

  1. myinsurebiz
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    myinsurebiz Guru

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    OK - NetQuote keeps sending me leads for Term.

    As you know - I'm not the most experienced or seasoned Insurance agent - I need some advice.

    70 year old male.

    Wants $500k Term - as long a term as he can get.

    Quad Bypass in 2001.

    No present issues.

    All kind of Meds.

    TIKOSYN 0.5 mg

    HYZAAR - hbp - but under control 125 / 75

    Crestor - but under control - 147 C and 124 T

    Warfarin - generic for COUMADIN

    Hasn't been to a hospital in over 3 years.

    He wants large Face - but when I ran it - it came back table 8 - 300% rate up - over $40k a year in premium.

    The guy is loaded in real estate - with no liquidity.

    Has young spouse and teen age daughter at home. He wants them to have plenty of cash WITHOUT waiting weeks to get to it, when he passes.

    He is willing to short sell a piece of property IF he has to.

    What should I recommend?

    Thanks,

    Tom
     
    Last edited: Nov 17, 2008
  2. bluemarlin08
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    bluemarlin08 Guru

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    I would think it will be hard to find ANY coverage. The guy hasn't been to doc in 3 years? I would say at a minimum an underwriter will require him to have a complete physical at his expense and revisit his cardiologist. He better take any coverage he can get. A good broker can give you quick idea in 24 hours.
     
  3. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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  4. taterpeeler
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    taterpeeler Guru

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  5. SportsNut
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    SportsNut Guru

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    Hmmmm. Short sell a piece of real estate...

    Tom: Apparently you know less about real estate than you know about insurance. A short sell is when a mortgage is owed on a property and the property is worth less than the mtg... and the bank or lender agrees to accept less than is owed to allow the property to sell... therein satisfying the mtg for less. This produces NO cash for the seller.

    You MAY be referring to him selling for less than he wants to, which all RE investors are today, in order to produce SOME CASH to pay premiums. Could that be the case...?

    He may be able to leverage some of the equity in a few of the properties to create enough cash to pay the prems... I would think that he would be far better with some sort of a WL or UL product, because that kind of age and a combo of those health issues won't work for a term product... at least for more than a couple of years.... Maybe a WL wiht a term rider... even if the face amt needs to be modified each year, (reducing it) to afford the prems... in other words, create your own reducing or decreasing term policy... via policy chg or modification each year...

    Just a few of not too many ideas you have to choose from. He may even consider a SPWL policy if he can acquire enough cash... which may work better from an u/w standpoint.

    Please don't attempt to advise him on real estate...
     
  6. GreenSky
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    GreenSky Guru

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    Tom:

    I would recommend that you stop recruiting and learn insurance, and not by just asking on the forum.

    Meet with a GA or FMO and see if you can get contracted under them. Yes, you won't get FMO level commissions, but maybe you'll do more good than harm to your clients.

    Notice, I didn't make the OBVIOUS joke that you are only out of your realm because its something dealing with insurance. When it's that easy, no point even mentioning it.

    May god bless you.

    Rick
     
    GreenSky, Nov 17, 2008
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  7. Winter_123
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    Winter_123 Guru

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    He needs to work with his strong point which is his real estate holdings and not his health. A 70 year old male who has had a quad bypass. Keep your expectations low.

    If he wants his heirs to have some immeidate cash then he needs to liquidate some real estate and get it into an annuity or something like that. Probably a good time to connect with an attorney and get everything into a living trust or the like if he is concerned about his heirs having immediate access to cash and other holdings without going through probate. Different strategies depending on whether we are talking about the spouse or the kids. Anyway, I think his options are more in the direction of creative estate planning now rather than insurance. Insurance is probably not going to work, cost-effectively anyway. I certainly would not want to insure him.

    What the heck did you mean when you said "when I ran it, it came back a table 8? Have you got some kind of batman decoder ring or something? Or did you speak with underwriters at a good carrier?

    :cool:
     
    Last edited: Nov 17, 2008
  8. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    He's completed a "special part" of CLU that leaves you with the ability to rate these accurately...
     
  9. LGilmore
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    LGilmore Guru

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    Winter and I agree on something.. annuity..

    perfect for those who can't buy life coverage. Beneficaries get benefit in the same way they would a life policy without having to wait probate. Unfortunately just not the dollars for pennies of life insurance. Instead dollars for dollars, but liquid and outside of other holdups.
     
    LGilmore, Nov 17, 2008
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  10. SportsNut
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    SportsNut Guru

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    And taxable, don't forget. The gain (accrued int) is taxed as ord income in the year of death, at the beneficiaries tax rate...

    For some reason many forget to explain the taxation on annuities... In this case, with a high percentage of holdings in RE, which can create some decent tax write-offs, the subject might be as well off having a savings acct, either joint with spouse, or POD acct... and the int might be better to be taxed as earned, while the old boy is alive, as opposed to the tax problem he may have when he is deceased. Depends largely whether his property is titled to him, or a partnership, corp or LLC...

    Obviously an equation for an estate plan... if he is truly high net worth invidividual... but, I have been involved in RE investment for many, many years... and one common denminator with RE investors is they tend to be way more focused on this year and maybe next, but not long term planning. Maybe that is why this guy is now planning his insurance need a year or two before the need.

    But as stated by several earlier in the post, there is not enough cogent data to know the best options to suggest.
     
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