Owner/Payor Question

HoosierLife

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I have a client that wants to get 10K worth of coverage for their 20 year old grandson. I think they want to do Mons 10 pay, but they are afraid of what the grandson will do with the policy once they die.

Can they be both owner and payor? I would assume I would still need the grandson present to answer the health questions.

And the real question is what happens after they die? They have a will set up and they would want it to go into their estate. Their executor would continue to pay the premiums if needed. The executor is the uncle of said grandson.

What is the best way to set this up?
 
I have a client that wants to get 10K worth of coverage for their 20 year old grandson. I think they want to do Mons 10 pay, but they are afraid of what the grandson will do with the policy once they die.

Can they be both owner and payor? I would assume I would still need the grandson present to answer the health questions.

And the real question is what happens after they die? They have a will set up and they would want it to go into their estate. Their executor would continue to pay the premiums if needed. The executor is the uncle of said grandson.

What is the best way to set this up?

No problem with them being the owner and payor. Monumental used to a separate contingent owner form, {may still have it}, that was used if you didn't want the owner to automatically revert to the insured upon the death of the owner. That is what will happen if you don't designate a contingent owner.
 
Thanks, JD. I found the contingent owner form. It's actually just a change owner form, but also has a section for the con owner. Called TA and they said just to include it with the app.
 
I have to ask. Why are you doing the Mon policy on him?

I have a client that wants to get 10K worth of coverage for their 20 year old grandson. I think they want to do Mons 10 pay, but they are afraid of what the grandson will do with the policy once they die.

Can they be both owner and payor? I would assume I would still need the grandson present to answer the health questions.

And the real question is what happens after they die? They have a will set up and they would want it to go into their estate. Their executor would continue to pay the premiums if needed. The executor is the uncle of said grandson.

What is the best way to set this up?
 
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I have a client that wants to get 10K worth of coverage for their 20 year old grandson.....

I would assume I would still need the grandson present to answer the health questions.



Yes you will need 20yr grandson present to answer health questions and sign app.
 
I have to ask. Why are you doing the Mon policy on him?

I started to talk about getting something more for the same price fully UW and they immediately balked. "He don't need a million dollar policy, only 10K." I said ok. I had mentioned that they could probably get 25k fully UW for what the SIWL policy would cost, even explained why SIWL cost more, but they didn't seem to care.

And I chose Mon cause it goes below age 50 and has a 10 pay.
 
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I started to talk about getting something more for the same price fully UW and they immediately balked. "He don't need a million dollar policy, only 10K." I said ok. I had mentioned that they could probably get 25k fully UW for what the SIWL policy would cost, even explained why SIWL cost more, but they didn't seem to care.

Makes sense. I have done the same. The 10 pay is nice.

Just an FYI, there are non med plans out there at that age.
 
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