What Would U Advise??

[TDFnCali]

79/F/NS on oxygen for COPD...only option is a 2yr GI.

She currently has a 30k term policy, thats past the lock in period & on a 1yr renewal basis at like $150/mo....was $30 originally.

Shes very poor but had a daughter that passed in the last yr or so & is adamant she wants to leave this 30k with her other daughter....as she said "She promised"! But she cant afford it & within 1-2yrs will stop paying & have nothing & too old to get anything else.

She did buy a $35 policy on her daughter for 10k with me, but should she get a 2yr WL ROP GI or what would u guys suggest?

Will be checking back in from Sin City!

 

[insureitnow]

The oxygen will almost certainly put her in the GI catagory. Vantis top age is 80.

 

[SportsNut]

Dicey...

I would NEVER suggest that she cancel any immediate coverage benefit plan for a modified benefit; (2yr ROP). Doing so would place you in a liability situation should the old gal pass in the 2 yr period. Unless she is adament about doing so, and maybe even another advisor/daughter, who can adequately acknowledge and disclaim the move in writing, I simply wouldn't put my name on such a transaction.

 

[WinoBlues]

Tough position to be in.

As `Nut suggested. Anything I did would need to be signed off by her and the beneficiary.

Here is one suggestion.

Reduce the term to around $10,000. If allowable. Then put here into Vantis $10k = $105mo. The Bene may need to know that they may need to help out with these premiums at some point.

$5k will take care of cremation and leave a couple dollars over - $53.40. Probably more realistic to what she can afford.

Just no good options.

 

[Josh]

79/F/NS on oxygen for COPD...only option is a 2yr GI.

She currently has a 30k term policy, thats past the lock in period & on a 1yr renewal basis at like $150/mo....was $30 originally.

Shes very poor but had a daughter that passed in the last yr or so & is adamant she wants to leave this 30k with her other daughter....as she said "She promised"! But she cant afford it & within 1-2yrs will stop paying & have nothing & too old to get anything else.

She did buy a $35 policy on her daughter for 10k with me, but should she get a 2yr WL ROP GI or what would u guys suggest?

Will be checking back in from Sin City!

Is the term policy convertible?

 

[jacobtn]

Hey Toby, unless she uses oxygen more than twice a week 5 star will give her immediate coverage. i assume she uses it 24/7 which wouldn't work, but if it's occasional use only than thats a great option.

other option to explore would be to AOR her current coverage and convert it to permanent if its available. you'd get paid and she'd have permanent coverage with the same carrier. would have to call and see if thats an option.

 

[Josh]

Do you usually have to do an AOR change to do the convertible? I think the conversion more or less does that automatically.

 

[WinoBlues]

Do you usually have to do an AOR change to do the convertible? I think the conversion more or less does that automatically.

Sometime you do sometimes you do not. Safer to do it. Some will only pay commissions to the current AOR. Also if the old MGA is different than the new one they may need to release it.

 

[Josh]

Sometime you do sometimes you do not. Safer to do it. Some will only pay commissions to the current AOR. Also if the old MGA is different than the new one they may need to release it.

Did one with Assurity and had no problems, but that might have been the only time I did it. Easy enough question to ask a carrier though.

 

[WinoBlues]

Did one with Assurity and had no problems, but that might have been the only time I did it. Easy enough question to ask a carrier though.

Yup. Do not want to do one and have some other guy get paid. I have seen it happen on a $5,000 commission.
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There is a ton of convertible term out there. And since most agents do not service their book it is all orphaned to one degree or another.