Selling Life Policies

[Mr_Ed]

I have a lot of clients who are at that stage in life where they don't need their life insurance anymore.

Most of them have term policies that have at least $250K in death benefit.

They have no debt, they are retired and they are cancelling their life insurance and buying ltc insurance (from me) instead.

would it make sense for them to sell their life insurance policies?

if so, what do I need to ask them to find out if their policy is "sellable"?

any help would be appreciated.

thanks.

sao

 

[moonlightandmargaritas]

They have no debt, they are retired and they are cancelling their life insurance and buying ltc insurance (from me) instead.

Interesting. For the married couples, do you take into account the loss of income from Social Security?

 

[Mr_Ed]

Interesting. For the married couples, do you take into account the loss of income from Social Security?

Most of my clients are not on social security yet.
And they don't need social security to live comfortably.



Can someone answer my question?

 

[scotte]

I didn't think you could sell Term policies, just permanent policies.

 

[WinoBlues]

Most of my clients are not on social security yet.
And they don't need social security to live comfortably.



Can someone answer my question?

Then the term plans have very little value unless they have a life threatening condition.

The main question a buyer is going to want to know is "when are you going to die". What if any are the conversion options? Is there ABR?

 

[Mr_Ed]

Then the term plans have very little value unless they have a life threatening condition.

The main question a buyer is going to want to know is "when are you going to die". What if any are the conversion options? Is there ABR?

I will find out about the ABR and the convertibility.

thank you for your assistance.

 

[Nikita]

I have a lot of clients who are at that stage in life where they don't need their life insurance anymore.

Most of them have term policies that have at least $250K in death benefit.

They have no debt, they are retired and they are cancelling their life insurance and buying ltc insurance (from me) instead.

would it make sense for them to sell their life insurance policies?

if so, what do I need to ask them to find out if their policy is "sellable"?

any help would be appreciated.

thanks.

sao

Another option is to rollover their existing life insurance policy into a life-LTC hybrid policy

 

[Mr_Ed]

Another option is to rollover their existing life insurance policy into a life-LTC hybrid policy

that won't work for a term policy.

 

[Justin Bilyj]

that won't work for a term policy.

Why not? Trans has the LB that covers critical, chronic in their term product. SI upto 250k.

 

[scagnt83]

Why not? Trans has the LB that covers critical, chronic in their term product. SI upto 250k.

Because with a term policy there is no CV to 1035 into a new policy... the comment was about a 1035 exchange into a life/annuity combo.