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I inherited a client who has a term policy with his business partners as the beneficiary. His initial 10 year term is up in a few months and the business owners want to continue his coverage. When he applied, he qualified at the best health class possible with Ohio National. They also just told me that he has advanced Prostate cancer with a life expectancy of less than 5 years. :(
So, we can't just re-write a new term policy due to current health.
The options as I see them are to continue with the ART which starts at about $3,000 the first year and then by year 5 is $17,000. Total cash outlay of $36,000 over 5 years, higher if they extend beyond year 5.
OR
Convert to the single policy available (Ohio National) Virtus Basic. I ran an illustration and they can pay a premium of $6,000 for 3 years and it will fund the policy long enough to provide 7 years of death benefit. Doing the math, this seems to be a no-brainer. However, I have never done a term to permanent conversion so, knowing this is the ONLY available conversion option, would any of you see this as the best solution like I do?
Appreciate any input.
Thanks.
So, we can't just re-write a new term policy due to current health.
The options as I see them are to continue with the ART which starts at about $3,000 the first year and then by year 5 is $17,000. Total cash outlay of $36,000 over 5 years, higher if they extend beyond year 5.
OR
Convert to the single policy available (Ohio National) Virtus Basic. I ran an illustration and they can pay a premium of $6,000 for 3 years and it will fund the policy long enough to provide 7 years of death benefit. Doing the math, this seems to be a no-brainer. However, I have never done a term to permanent conversion so, knowing this is the ONLY available conversion option, would any of you see this as the best solution like I do?
Appreciate any input.
Thanks.