Advice Please

[unic.consulting]

I'm fairly new to the insurance industry, so I don't know if there's anything I'm missing that will help this situation:

70/M Client (recent hospitalization for CAD, stent in 2002) came to me to review his policies - He has a WL $127k w/ a $57k loan. The dividends are paying off the loan interest - barely. He has some debts with family friends that he accrued during the internet bubble burst, and would like to let them be beneficiaries on the policy. The $70k available will more than pay them off, so as far as that is concerned, he should be set.

Now for the downside - he also has two UL policies from the mid- and late- 90s. First is a $500k that he was minimally funding $260.90 for P20. He can't afford the payment now, so he has let it lapse. Second is a $250k that he is paying $600/quarter. Slightly above minimum. It is set to lapse in 3 years at the current rate of funding.

My question is should he stop paying the $250k policy and use the premiums to pay off the loan on his WL faster, get a new policy that isn't about to fall off the cliff, or am I missing something with the UL that will rescue it?

 

[WinoBlues]

I'm fairly new to the insurance industry, so I don't know if there's anything I'm missing that will help this situation:

70/M Client (recent hospitalization for CAD, stent in 2002) came to me to review his policies - He has a WL $127k w/ a $57k loan. The dividends are paying off the loan interest - barely. He has some debts with family friends that he accrued during the internet bubble burst, and would like to let them be beneficiaries on the policy. The $70k available will more than pay them off, so as far as that is concerned, he should be set.

Now for the downside - he also has two UL policies from the mid- and late- 90s. First is a $500k that he was minimally funding $260.90 for P20. He can't afford the payment now, so he has let it lapse. Second is a $250k that he is paying $600/quarter. Slightly above minimum. It is set to lapse in 3 years at the current rate of funding.

My question is should he stop paying the $250k policy and use the premiums to pay off the loan on his WL faster, get a new policy that isn't about to fall off the cliff, or am I missing something with the UL that will rescue it?

Couple quick questions to add to the mix. Life expectancy. How much would the $600 QUOTE buy him and for how long. Can the the $250k be reduced with a premium adjustment to carry to mortality.

Lee

 

[unic.consulting]

Couple quick questions to add to the mix. Life expectancy. How much would the $600 QUOTE buy him and for how long. Can the the $250k be reduced with a premium adjustment to carry to mortality.

Lee

Life expectancy seems to be about 9-10 years. What insurance companies would you recommend?

 

[Newby]

I'm fairly new to the insurance industry, so I don't know if there's anything I'm missing that will help this situation: 70/M Client (recent hospitalization for CAD, stent in 2002) came to me to review his policies - He has a WL $127k w/ a $57k loan. The dividends are paying off the loan interest - barely. He has some debts with family friends that he accrued during the internet bubble burst, and would like to let them be beneficiaries on the policy. The $70k available will more than pay them off, so as far as that is concerned, he should be set. Now for the downside - he also has two UL policies from the mid- and late- 90s. First is a $500k that he was minimally funding $260.90 for P20. He can't afford the payment now, so he has let it lapse. Second is a $250k that he is paying $600/quarter. Slightly above minimum. It is set to lapse in 3 years at the current rate of funding. My question is should he stop paying the $250k policy and use the premiums to pay off the loan on his WL faster, get a new policy that isn't about to fall off the cliff, or am I missing something with the UL that will rescue it?

Reducing the coverage amount of the ULs should help him.

 

[WinoBlues]

Life expectancy seems to be about 9-10 years. What insurance companies would you recommend?

Personally I would start with inforce illustrations. If for no other reason to CYA.

1) Show face amount to keep the premium at $600/Q to run 10 and 15 years. I would ask they run it at mid point.

Did the $500 UL already lapse with no surrender value? If not maybe roll any values, or other funds, into the smaller one to increase face or time.

Edit: another option is increase the premium also.

Lee

 

[unic.consulting]

Personally I would start with inforce illustrations. If for no other reason to CYA.

1) Show face amount to keep the premium at $600/Q to run 10 and 15 years. I would ask they run it at mid point.

Did the $500 UL already lapse with no surrender value? If not maybe roll any values, or other funds, into the smaller one to increase face or time.

Edit: another option is increase the premium also.

Lee

Neither one has any current surrender value. The $500 lapsed at the beginning of this year.

 

[WinoBlues]

Neither one has any current surrender value. The $500 lapsed at the beginning of this year.

Depending on the facts of his medical Hx for the last couple years FE may be his only hope outside of what I suggested with the UL. One of the FE could help. Unless he has more premium dollars he can spend.

I would suggest comparing the reduced UL to what loan reduction at $2,400. a year will do. BTW, Unless there is a life sale here you are working for free. His old agent should be doing this.

 

[unic.consulting]

Depending on the facts of his medical Hx for the last couple years FE may be his only hope outside of what I suggested with the UL. One of the FE could help. Unless he has more premium dollars he can spend.

I would suggest comparing the reduced UL to what loan reduction at $2,400. a year will do. BTW, Unless there is a life sale here you are working for free. His old agent should be doing this.

I'm actually doing his health insurance, and he asked me if I could review his life insurance for a consultation fee, so I'm all set on that. Mostly, I'm looking at this as a referral opportunity.

 

[WinoBlues]

I'm actually doing his health insurance, and he asked me if I could review his life insurance for a consultation fee, so I'm all set on that. Mostly, I'm looking at this as a referral opportunity.

Cool. I do the same thing. Start with the inforce illustrations.

 

[GreenSky]

Funny thing is had this been posted in the FE forum the subject would have been:

Advise Please

Rick