Newbie Term Question

[wealthpro]

Hello,

I recently started out in the FEX arena. Yesterday I was speaking with a lead and she decided that she had enough coverage and didn't want to pursue final expense coverage. She would like to buy a policy for her 23 year old grandson. What is involved with someone buying a policy for someone else? Can I sell him the policy and have her pay the premiums for him? I just don't know how to proceed. We have a new appointment in a few weeks to discuss it.

 

[WinoBlues]

It is done all of the time.
$100,000 30 yr term will be <$15mo
There may be better options, however, for a new agent, I would suggest making them a client first and don't complicate yourself out of the client's home. And lose a shot at the grandson's parents down the road.

Example: Assurity = $14.53mo Non-Med, can be done totally remotely he can do it all on his phone. a ton of riders are available. They also have a nice Par WL down to $25k you can add a term rider to.

 

[Allen Trent]

Hello,

I recently started out in the FEX arena. Yesterday I was speaking with a lead and she decided that she had enough coverage and didn't want to pursue final expense coverage. She would like to buy a policy for her 23 year old grandson. What is involved with someone buying a policy for someone else? Can I sell him the policy and have her pay the premiums for him? I just don't know how to proceed. We have a new appointment in a few weeks to discuss it.

Carriers will definitely allow her to be setup as the Payor of premiums. Whether or not the carrier will allow her to be the owner and/or beneficiary will depend on whether the carrier considers her to have an insurable interest in his death. IE: she is the executorvof his estate to pay his debts/funeral or if she relies on his income for any reason. Each carrier will vary slightly in that regard

 

[Ksutton]

Hello,

I recently started out in the FEX arena. Yesterday I was speaking with a lead and she decided that she had enough coverage and didn't want to pursue final expense coverage. She would like to buy a policy for her 23 year old grandson. What is involved with someone buying a policy for someone else? Can I sell him the policy and have her pay the premiums for him? I just don't know how to proceed. We have a new appointment in a few weeks to discuss it.

Make sure both she and He ( the payor and proposed insured) are there to meet. Fact find and ask questions to help them figure out what the coverage is for..... Foresters has a great participating whole life - Also a nice Smart UL for younger folks. You can call them and they can give you illustrations on the fly....*The Smart UL is not a guaranteed UL. MOO has a nice GUL Express. All of those options are Non med and pretty simple. Can be done all in the home on your next visit.

 

[Tahoe Ray]

The Smart UL is not a guaranteed UL. MOO has a nice GUL Express. All of those options are Non med and pretty simple. Can be done all in the home on your next visit.

Doesn't GUL Express have built-in tables? Maybe I'm missing something but there are a ton of GUL products that don't require an exam and will offer preferred rates (assuming the 23yo is healthy).

Someone that young may benefit more from WL though (participating, since the DB will likely eclipse the GUL later in life based on the same premiums)

 

[Ksutton]

Doesn't GUL Express have built-in tables? Maybe I'm missing something but there are a ton of GUL products that don't require an exam and will offer preferred rates (assuming the 23yo is healthy).
Someone that young may benefit more from WL though (participating, since the DB will likely eclipse the GUL later in life based on the same premiums)

Yeah, I’m sure there are. Just trying to help give
A few simple options.