Is 100k on 78 Year Old Female Possible?

[djs]

Well, the term 'siblings' was used, not sibling. I assume there is more than one.

Perhaps the person with the loan wants to get the life insurance cash as well? Truth is, there isn't enough info to really decide what is best.

Dan

 

[Guest]

Why is mama putting that much DOWN on a house? Hell in my area, that would buy 1.5 houses outright......

 

[djs]

Yet, in my area, it wouldn't even make a downpayment. I guess it depends where you live.....

Dan

 

[Go Green]

Thank you for all your thoughts and opinions. Sorry I didn't provide more details originally. There are 3 other siblings, the homes they are considering are valued between 135-150k, the client and wife has combined income between 85k-100k. Unfortunately their credit is beyond bad(Lost business, home, etc, and savings 3 years ago), just getting back on track. Thanks again.

 

[MrProducer]

Assuming she is closer to age 78.....

Genworth's GenGuard UL - Standard Rated = $420.78/month
If Select Rated = $380.15/month
Preferred = $349.87/month

Keep in mind that at this age, any underwriting done will be in depth. Make sure she discloses ALL known medical issues and information PRIOR to preparing the illiustration. Even then, state clearly that it is based solely on information she provided you, and is subject to change should medical records, or the medical exam show something different.
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Additionally, if price is an issue, you can also look at TransAmerica's TransTerm10 or 15 yr term. Their 10-yr term pricing for $100,000 (78/f) is as follows:

Standard Rate = $281.25
Standard Plus = $251.79
Preferred = $197.12
Preferred Plus = $175.12

 

[VolAgent]

My guess is that if they need momma to put $100K on the house that they cannot afford a $400 per month premium.

Bingo. That sums it up in a nutshell. If someone needs momma to put up that kind of money to get a house, they can't afford the insurance premium to replace the money.

They should sign a note to momma for the 100k and make payments on it. Best way to restore the estate, and avoid gift taxes.

 

[Biggin]

Have client whose 78 year old mother is putting down 100k on a home for his family. The siblings will get less of inheritance because of this. So the client is interested in insuring the mother so inheritance is same, so no siblings feel slighted. Any advice on best product available for this situation and how would it work? Thanks

The siblings are going to come out ahead because THEIR inheritance will be tax free.....nice. If they are smart, they will LOVE this arrangement.
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My guess is that if they need momma to put $100K on the house that they cannot afford a $400 per month premium.

Can't afford the house either....Do they not have banks in the area? Good call X