- 4,306
Rearden said:
No APL, but not lapsing on day 30 gives you time to save the case with a loan form if you're so inclined.
Settlers Grace Period
- Thread starter rousemark
- Start date
No APL, but not lapsing on day 30 gives you time to save the case with a loan form if you're so inclined.
- 19,648
At 2 years age it probably doesn't have enough CV to pay the premium and most companies don't activate the APL until after 60 days.
- 17,073
Settlers also has a nice Nursing Home benefit.
I got a notice that a lady I sold a $5,000 Settlers policy to 4-years ago was cash surrendering it. I contacted the family and she was in a nursing home and spending everything down for Medicaid.
The attorney they were working with had already spent down her assets by setting up funeral trusts through a local funeral home for the kids and their spouses which is allowed in Indiana. There was only enough money to pay $7,000 into each trust and Indiana allows $10,000 each.
The cash value they were getting was only $345. I told the son that I would teach him how to turn $345 into $10,000.
I told the son about the nursing home rider where they can actually get 75% of face ($3,750) and at his age that would pay for a $10,000 single pay Settlers policy which can be issued in a Medicaid exempt funeral trust which would free up more money to bring the other funeral trusts up to $10,000 each. He said he would discuss it with his family and attorney.
They decided to just take the $345. They had already paid the big-buck attorney to figure everything out and they trusted that he had a good handle on everything.
Score one for the attorney.
I got a notice that a lady I sold a $5,000 Settlers policy to 4-years ago was cash surrendering it. I contacted the family and she was in a nursing home and spending everything down for Medicaid.
The attorney they were working with had already spent down her assets by setting up funeral trusts through a local funeral home for the kids and their spouses which is allowed in Indiana. There was only enough money to pay $7,000 into each trust and Indiana allows $10,000 each.
The cash value they were getting was only $345. I told the son that I would teach him how to turn $345 into $10,000.
I told the son about the nursing home rider where they can actually get 75% of face ($3,750) and at his age that would pay for a $10,000 single pay Settlers policy which can be issued in a Medicaid exempt funeral trust which would free up more money to bring the other funeral trusts up to $10,000 each. He said he would discuss it with his family and attorney.
They decided to just take the $345. They had already paid the big-buck attorney to figure everything out and they trusted that he had a good handle on everything.
Score one for the attorney.
- 4,306
Newby said:
And lawyers are ALWAYS trustworthy! You know, I've had prospects with money in CD's set aside for their final expenses. Perfect prospect for single premium plan, right? Haven't sold a single one. I can get people to pay for a policy for the rest of their life, but if it comes to what they think is "big money", then I seem to have a credibility gap. Maybe they'd trust me more if I charged big bucks for the advice!
- 15,041
Pretty much. IMO, fee based advisors aren't about necessarily more objective advice. Is is just getting people to pay you for your advice and then having more credibility for it when you tell them to buy stuff.
Sounds like an annuity client to me (if they won't use it for single premium life)....
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