IS THERE SUCH A THING AS . . .

[myinsurebiz]

IS THERE SUCH A THING AS . . .

Bob owns a Life Insurance policy on whomever and is also the Payor.

Bob dies - can the Policy then be Paid Up?

Bob is not the Insured.

 

[STIBROKER]

IS THERE SUCH A THING AS . . .

Bob owns a Life Insurance policy on whomever and is also the Payor.

Bob dies - can the Policy then be Paid Up?

Bob is not the Insured.

No

 

[WinoBlues]

IS THERE SUCH A THING AS . . .

Bob owns a Life Insurance policy on whomever and is also the Payor.

Bob dies - can the Policy then be Paid Up?

Bob is not the Insured.

Now? I do not know. In the past there were. Especially in kids policies.
Seems like I remember something from Protective as a rider. Maybe, Prudential?

 

[myinsurebiz]

Now? I do not know. In the past there were. Especially in kids policies.
Seems like I remember something from Protective as a rider. Maybe, Prudential?

This would be a cool rider to add by a Carrier wanting to tap this market.

I could sell in to this niche . . .

 

[WinoBlues]

This would be a cool rider to add by a Carrier wanting to tap this market.

I could sell in to this niche . . .

Which niche?

 

[scagnt83]

Sure. Get a 2nd policy on Bob to pay off the 1st policy.

Is Bob uninsurable? Use a Survivorship that accepts 1 uninsurable spouse. It can waive Premium for 15-20 years after the 1st death (depending on the product). By that time, the policy premium could be offset by dividend/interest.

 

[DHK]

IS THERE SUCH A THING AS . . .

Bob owns a Life Insurance policy on whomever and is also the Payor.

Bob dies - can the Policy then be Paid Up?

Bob is not the Insured.

No. There can be a successor owner of the policy, but the policy is not paid up unless the policyowner (whether it's Bob or the successor owner) does a RPU option.

One thing that IS out there is a disability waiver of premium for the payor. This is if Bob is disabled as the owner of the policy, the premiums will continue to be made as long as he is on a qualified claim.

I haven't seen that in a long time, but I remember that being available, particularly for children's policies.

 

[Life Hawk]

Which niche?

Uh... you think like I think.

 

[WinoBlues]

No. There can be a successor owner of the policy, but the policy is not paid up unless the policyowner (whether it's Bob or the successor owner) does a RPU option.

One thing that IS out there is a disability waiver of premium for the payor. This is if Bob is disabled as the owner of the policy, the premiums will continue to be made as long as he is on a qualified claim.

I haven't seen that in a long time, but I remember that being available, particularly for children's policies.

Non forfeiture options are not discussed much any longer. They are definitely valuable.

 

[myinsurebiz]

Thanks everyone.

Just thought is would be a usuable rider.