- 10,276
Most of the major carriers dropped DT from their portfolio years ago. Rates were lousy anyhow.
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Newby -
At what point do you think the owners of DT will drop their policy? Is it when that $100,000 policy is only worth $50,000 and they are paying the same as they did for $100,000? Or maybe at $20,000?
And what if they decide at a later point they need the original amount (or more) but have become uninsurable? What then?
DT is a useless product. I don't know any carrier that offer it and even if I did I would never make it available to my clients.
Their intention SHOULD be to become self-insured throught he years
Give me an example of someone who could be considered self insured. Describe their circumstances.
In all the years I have been in this business, I have never met anyone who either could or should be self insured. Perhaps you can enlighten me as to what I have overlooked.
major tax issues when you die
Say I run into Mr B that I already have covered for his life including DI and LTCi the whole gambit, that would be nice! He says to me that he is expanding his business and that he is borrowing 1 million and wants the rock bottom price to protect the loan since he doesn't want other insurance money he has specifically earmark to be disturb if something happens. Now this is a prime example of where a DT could be implemented, of course you show him both rates say thru AIG since I'm fairly confident they still have one or two DT I can sell. Yet though I would likely recommend a 5 year term that is GR, just drop the amount at the renewal. I seriously doubt the DT is any cheaper then the 5 year term policy.
Very few inherited assets get stepped up basis.
The only assets that I know of that don't get a step up are annuities and retirement plan assets. What is your understanding?
Alright well what are the facts. Lots of people here with theoretical ideas of how DT could be good but lets see some rates from someone who supports it. There are no facts in this discussion. Are you talking about a 1,000,000 DT policy in the example above. Are there DT plans that are fully underwritten or are you going to put 1,000,000 on some type of mortgage or non-med plan which would be about Table D.
As an aside, level term is essentially a decreaing term plan anyway because it gets eaten up by inflation. Even if tied to a mortgage the DT plans blow up anyway. Most homeowners refinance or take out a home equity loan and then they need more coverage and they are older and may or may not be as insurable.
Winter