Pre-need Replacement?

[rizzle]

spoke with someone that has a 15k preneed. 56 year old woman, non-smoker , no meds.
got policy 4 years ago and pays around $100/month.

not sure if these things can be cancelled or not or if it's even worth looking at, but if so, can I put her in a better position with possibly a combination of product?
thx

 

[Newby]

spoke with someone that has a 15k preneed. 56 year old woman, non-smoker , no meds.
got policy 4 years ago and pays around $100/month.

not sure if these things can be cancelled or not or if it's even worth looking at, but if so, can I put her in a better position with possibly a combination of product?
thx

That doesn't sound like a Preneed. Usually Preneed policies are not for round numbers like $15,000. They are for a funeral amount (like 8,646).
the payment on $15,000 would not be $100 either. I don't have my Calc with me but it would be over $200 monthly.
I think she just has a final expense policy so you just need to see if you can offer something more attractive.
Preneeds are not lifetime pay. They are 3, 5 or 10 year with an increasing face amount so they are hard to compare to an FE policy.

 

[MrProducer]

That doesn't sound like a Preneed. Usually Preneed policies are not for round numbers like $15,000. They are for a funeral amount (like 8,646).
the payment on $15,000 would not be $100 either. I don't have my Calc with me but it would be over $200 monthly.
I think she just has a final expense policy so you just need to see if you can offer something more attractive.
Preneeds are not lifetime pay. They are 3, 5 or 10 year with an increasing face amount so they are hard to compare to an FE policy.

I agree with Newby. The best way to find out for sure is to ask the client to show you their current policy documentation. That should explain everything.

 

[rizzle]

the funeral home that she got it from.
http://www.hathawayfunerals.com/plan/payment.html

ill check with her again tomorrow.thx

 

[Hopwood04]

Replacement is usually not a good option. You may want to do a fact finder and see if she has a need for more coverage, then a combination policy might be in order.

 

[floridabroker]

spoke with someone that has a 15k preneed. 56 year old woman, non-smoker , no meds.
got policy 4 years ago and pays around $100/month.

not sure if these things can be cancelled or not or if it's even worth looking at, but if so, can I put her in a better position with possibly a combination of product?
thx

If she is in reasonably good health you could get her a $15,000 WL policy for around $35 (in good health) - $60 a month even with HBP and Diabetes as long as she is seeing a doctor.

That would be worth replacing!

Let me know if you are interested.

PM me and I will send you the information!

 

[jdeasy]

If she is in reasonably good health you could get her a $15,000 WL policy for around $35 (in good health) - $60 a month even with HBP and Diabetes as long as she is seeing a doctor.

That would be worth replacing!

Let me know if you are interested.

PM me and I will send you the information!

How is that a good deal? If it's a preneed she will pay a maximum of 6 more years. Most likely less than that. Even at that she will pay $7200 out of pocket for the current policy. You would advocate her paying $600 or more per year for the next 25 years or so, {$15000 instead of $7200}, and not have inflation built in?

I'm all about putting someone in a beter situation, but I fail to see how you would accomplish that with what you propose.

 

[floridabroker]

With homesteaders a 52 yr old for 15K would cost $229/month.

$35 a month for $15K and invest the difference I would say she would be better off at the end of the day.

You say whay if she dies in 25 years... I say what if she dies next year!

Most companies offer a reduced paid up policy for what she has already paid in so she wouldn't lose anything!!!

 

[jdeasy]

With homesteaders a 52 yr old for 15K would cost $229/month.

$35 a month for $15K and invest the difference I would say she would be better off at the end of the day.

You say whay if she dies in 25 years... I say what if she dies next year!

Most companies offer a reduced paid up policy for what she has already paid in so she wouldn't lose anything!!!

The op said they are paying $100 month for a $15000 preneed.

You are making a judgement based on unknown information. Even offering a contract. What's up with that??

 

[Newby]

With homesteaders a 52 yr old for 15K would cost $229/month.

$35 a month for $15K and invest the difference I would say she would be better off at the end of the day.

You say whay if she dies in 25 years... I say what if she dies next year!

Most companies offer a reduced paid up policy for what she has already paid in so she wouldn't lose anything!!!

Most 52 year olds would qualify for Homesteaders preferred rates which are lower. You are comparing apples to oranges. Lifetime pay with level benefit compared to limited pay with increasing benefit. And RPU does NOT give you a paid up policy for what you have paid in with ANY company. You get a much lower amount of policy than what you have paid in.