A Question for You Life Experts

[WinoBlues]

Xs

Used a cover letter just like that to issue a fully underwritten 75k on a 70 yr old with 15k of income. The all the underwriter need was something to put in the file. Owner was a nephew.

underwriters will approve a lot of financial cases as long as they have "something to put in the file" for reinsurers or stockholders... Write a cover letter and break down how you determined the need. The elderly parent does housework, child care, runs errands, will have a funeral cost of x, a daily drain of Y and the monies used to fund should not be from the owner of the policy/kids. explain it and it will get approved, but don't go crazy and asked for hundreds of thousands because they can "afford it."

 

[Franz Kafka]

Xs

Used a cover letter just like that to issue a fully underwritten 75k on a 70 yr old with 15k of income. The all the underwriter need was something to put in the file. Owner was a nephew.

That's what I had assumed - just something to put in the file. The name of the carrier ends with cock and they have declined 3 cases so far due to lack of adequate reason for insurance (I always write detailed cover letters).
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This is the same principle as a funded salary continuation plan reimbursed back with life insurance proceeds to the company.

The adult child is providing for the Senior parent. The child could take out a policy to provide "reimbursement of support costs".

Now that's interesting.
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underwriters will approve a lot of financial cases as long as they have "something to put in the file" for reinsurers or stockholders... Write a cover letter and break down how you determined the need. The elderly parent does housework, child care, runs errands, will have a funeral cost of x, a daily drain of Y and the monies used to fund should not be from the owner of the policy/kids. explain it and it will get approved, but don't go crazy and asked for hundreds of thousands because they can "afford it."

Why shouldn't the premium be paid by the owner/child?

 

[NinjaNic]

I mean't the monies used to pay for their parents daily living shouldn't have to be from the kids. It is not the kids' responsibility to pay for their parents living expenses and since they are paying for their expenses they should be reimbursed with life insurance. They can pay the premium no problem.

I think this need for insurance is easier to justify than if the insured was to buy it on their own, and basically say "its money for my kids"...that is a not a good justification

 

[VolAgent]

I mean't the monies used to pay for their parents daily living shouldn't have to be from the kids. It is not the kids' responsibility to pay for their parents living expenses and since they are paying for their expenses they should be reimbursed with life insurance. They can pay the premium no problem.

I think this need for insurance is easier to justify than if the insured was to buy it on their own, and basically say "its money for my kids"...that is a not a good justification

That would be a legacy, perfectly valid.

 

[scagnt83]

If they dont like the kid owning the policy, have the dad as owner and the kid as payor. Like Vol said, there is nothing wrong with wanting to leave a legacy.

 

[ActingBoss]

This is the same principle as a funded salary continuation plan reimbursed back with life insurance proceeds to the company.

The adult child is providing for the Senior parent. The child could take out a policy to provide "reimbursement of support costs".

Cute.

but that is probably why the child has it taken out, for sure.

 

[peopleperson]

I have life insurance on all my parents and they dont live with me.

All your parents? How many do you have?

 

[arnguy]

All your parents? How many do you have?

Don't ask. Mark has multiple parents for each of his many personalities!