Question for the FE Guys

[Chicken Coop]

Are you fellows 100% final expense?

The reason I ask this question is today I went out and wrote two 15k WL apps on a husband and wife, who are very low income. (understand, this is not my market, but a client sent me to this couple) All they wanted for themselves was enough to pay their final expense.

Anyway, when I was finishing up taking the apps, the couple asked me about insuring their 24 year old daughter who has two children. The couple will pay the premiums.

In that situation, would you have simply gone ahead and wrote another WL policy for a small face amount on the 24 year old daughter and two grandkids?

Or would you have maybe suggested a term policy with a considerably larger face amount on the 24 year old with a child rider?

I am just curious. I am in no way knocking the FE market, just wondering how you guys would have handled this.

 

[rousemark]

The first impulse is to say you do a better job if you write 100K -250K term policy. The problem with that is you say they are low income and they probably cannot identify with that that kind of money. Even if they are willing to buy it, most likely it will not stay in force therefore you haven't helped them by doing the "best" job.

On the other hand, if you write them a 15K-25K "burial" policy on her with a 10K child rider, they have what they had in mind and will usually keep it. Even though in your mind it might not be "best" it really is because the only good insurance policy is the one in force when needed. You might want to write it on a limited pay basis so it is paid up by the time the parents would be expected to pass away.

Will be interested to see what JD thinks as he knows the people in this market as well as anybody in the country.

 

[jacobtn]

I agree with your post. Their income and situation wound have me stick with fe, because when they miss a payment, its not game over. They have APL which keep it active while they catch up.

The first impulse is to say you do a better job if you write 100K -250K term policy. The problem with that is you say they are low income and they probably cannot identify with that that kind of money. Even if they are willing to buy it, most likely it will not stay in force therefore you haven't helped them by doing the "best" job.

On the other hand, if you write them a 15K-25K "burial" policy on her with a 10K child rider, they have what they had in mind and will usually keep it. Even though in your mind it might not be "best" it really is because the only good insurance policy is the one in force when needed. You might want to write it on a limited pay basis so it is paid up by the time the parents would be expected to pass away.

Will be interested to see what JD thinks as he knows the people in this market as well as anybody in the country.

 

[Iwillpay]

The first impulse is to say you do a better job if you write 100K -250K term policy. The problem with that is you say they are low income and they probably cannot identify with that that kind of money. Even if they are willing to buy it, most likely it will not stay in force therefore you haven't helped them by doing the "best" job.

On the other hand, if you write them a 15K-25K "burial" policy on her with a 10K child rider, they have what they had in mind and will usually keep it. Even though in your mind it might not be "best" it really is because the only good insurance policy is the one in force when needed. You might want to write it on a limited pay basis so it is paid up by the time the parents would be expected to pass away.

Will be interested to see what JD thinks as he knows the people in this market as well as anybody in the country.

Most definitely true. When you sell whole life insurance you are putting insurance in their insurance policy when that APL kicks in. I have seen many families saved by APL or policy loans.
The best insurance to have.

 

[funeraldirector]

Are you fellows 100% final expense?

The reason I ask this question is today I went out and wrote two 15k WL apps on a husband and wife, who are very low income. (understand, this is not my market, but a client sent me to this couple) All they wanted for themselves was enough to pay their final expense.

Anyway, when I was finishing up taking the apps, the couple asked me about insuring their 24 year old daughter who has two children. The couple will pay the premiums.

In that situation, would you have simply gone ahead and wrote another WL policy for a small face amount on the 24 year old daughter and two grandkids?

Or would you have maybe suggested a term policy with a considerably larger face amount on the 24 year old with a child rider?

I am just curious. I am in no way knocking the FE market, just wondering how you guys would have handled this.

I don't write term or riders. You have three adult prospects in that house and little discretionary income. Three FE write-ups at a total premium that is affordable and will stick is what I would've done. I bet they're on Medi-caid. How'd you protect their Medicaid?

 

[jdeasy]

Are you fellows 100% final expense?

The reason I ask this question is today I went out and wrote two 15k WL apps on a husband and wife, who are very low income. (understand, this is not my market, but a client sent me to this couple) All they wanted for themselves was enough to pay their final expense.

Anyway, when I was finishing up taking the apps, the couple asked me about insuring their 24 year old daughter who has two children. The couple will pay the premiums.

In that situation, would you have simply gone ahead and wrote another WL policy for a small face amount on the 24 year old daughter and two grandkids?

Or would you have maybe suggested a term policy with a considerably larger face amount on the 24 year old with a child rider?

I am just curious. I am in no way knocking the FE market, just wondering how you guys would have handled this.

I have many clients that are children and grandchildren of my FE clients. I write for them whatever the need is. Most I do a 10 or 20 pay whole life but if they have a need for a large term policy that's what I write.

There is not a single answer for all situations.

 

[coloradoseniormarket]

I have many clients that are children and grandchildren of my FE clients. I write for them whatever the need is. Most I do a 10 or 20 pay whole life but if they have a need for a large term policy that's what I write.

There is not a single answer for all situations.

The client's needs always comes first. Why are the parents motivated to provide the insurance for the daughter? Is the daughter responsible enough to handle finances. Without knowing more about all of the family and what they are trying to accomplish it is hard to make a recommendation. I have learned along time ago not to assume anything- especially about people, finances and goals.

 

[theinsuranceman]

Most likely a 10-pay or 20-pay for the daughter and her children is the way to go, use child riders for daughter's children if the parents can not afford adding these 3 separate 10-pay/20-pay policies.

$10k face amount to start may be advised so as not to overload parents with too much premium. Mention "one of the great things with these state regulated plans is you can always add on to them down the road if you want to".

Perhaps the parents have other children, grown, who could afford a policy on their family also (referrals).

 

[Newby]

Yes I would show them what a given amount of money would buy them with Settlers 20- pay with the child rider, RNA 20-pay and a 20-year term.

 

[WinoBlues]

>>""Anyway, when I was finishing up taking the apps, the couple asked me about insuring their 24 year old daughter who has two children. The couple will pay the premiums.""


Read more: Insurance Forum

I am not an FE only guy, so discount the below appropriately.

I run into this often. As JD and Colorado said depends on the situation. Unless the daughter has a medical impairment I do not sell an SI product. Young single mom with two young children has a large insurance need. And probably little money. At that age Baby daddy(s) is probably broke and probably not contributing much, if anything. So if something happens to her, Grandma will raise them. And sadly she will probably have more children.

My first inclination is going to be term or GUL with child rider. If the parents are against straight term I will go to ROP term that has RdPu at the end. Also make sure that the child riders go up to at least 20k. Remember you are only talking about $20.-$30. premium.

Edit: and what Greg said about following the leads to the other family members. Usually there are one or more that are doing better.