by pwhiteonlexington » Wed Feb 25, 2009 04:43 am
My mother is 84 years old and in pretty good shape for her age. We have no insurance to help with home going services though, when she leaves us. We just want to be able to provide a decent resting place for her without hassle; but she won't make the arrangements..
Posted: Fri Apr 17, 2009 09:02 am Post Subject:
Hey TRK3031962
Even in just decent health you would probably qualify for an FE.
I read somewhere that if someone does not qualify for other life insurance policies, FE would be a good option. So is there supposed to be an age limit before which I wouldn't qualify for FE? Or can I at 50 get FE?
Posted: Fri Apr 17, 2009 06:59 pm Post Subject:
MassMutual offers a whole life policy for anyone under the age of 90. If you would like you can email me and we can further discuss your grandmothers needs. My personal email is brooke.renfrow[at]gmail.com. I would be happy to provide you with a free quote but will admite due to her age it will be pretty expensive. If I can help just let me know.
Posted: Fri Apr 17, 2009 10:33 pm Post Subject:
We're writing up a case today for an 81-year-old....backdating to age 80 gives him $250k guaranteed forever for $13k/year or guaranteed for 10 years for $9500/year. The funds will be used to allow the spouse (who is 20 years younger) to continue paying the $11k/year premiums for a second-to-die policy for estate tax purposes once he is gone. Should fund the following ~23 years worth of premiums at no additional expense to her other than what was paid in premiums for the life policy on the husband. So yes, it does work in some cases, just not every case.
Posted: Sat Apr 18, 2009 11:08 am Post Subject:
The answer to the original question is, "lots of companies write policies on 80 year olds.
Posted: Sat Apr 18, 2009 11:34 am Post Subject:
We're writing up a case today for an 81-year-old....backdating to age 80 gives him $250k guaranteed forever for $13k/year or guaranteed for 10 years for $9500/year. The funds will be used to allow the spouse (who is 20 years younger) to continue paying the $11k/year premiums for a second-to-die policy for estate tax purposes once he is gone. Should fund the following ~23 years worth of premiums at no additional expense to her other than what was paid in premiums for the life policy on the husband. So yes, it does work in some cases, just not every case.
Can you explain this case a little bit more? I'm having trouble completely understanding it, but it sounds intriguing.
There are two policies. One is a GUL on an 80 year old male for $250,000 of coverage for 13K a year. The other is a second to die for 11K/year.
Has the GUL gone through underwriting? I'm asking because that is a great rate if you can get it with a strong carrier.
Who is the owner and who is the beneficiary of the GUL policy?
What type of policy is the 2nd to die policy?
What is the death benefit of the 2nd to die policy?
Who is the owner and beneficiary of the 2nd to die policy?
I appreciate your time with this. Thanks!
Posted: Sat Apr 18, 2009 09:12 pm Post Subject:
I read somewhere that if someone does not qualify for other life insurance policies, FE would be a good option. So is there supposed to be an age limit before which I wouldn't qualify for FE? Or can I at 50 get FE?
Yes Sil, you can at age 50, not a problem. But you should know that, you are an agent aren't you?
Posted: Sat Apr 18, 2009 09:23 pm Post Subject:
Can you explain this case a little bit more? I'm having trouble completely understanding it, but it sounds intriguing.
There are two policies. One is a GUL on an 80 year old male for $250,000 of coverage for 13K a year. The other is a second to die for 11K/year.
Has the GUL gone through underwriting? I'm asking because that is a great rate if you can get it with a strong carrier.
Who is the owner and who is the beneficiary of the GUL policy?
What type of policy is the 2nd to die policy?
What is the death benefit of the 2nd to die policy?
Who is the owner and beneficiary of the 2nd to die policy?
I appreciate your time with this. Thanks!
The GUL has not gone through underwriting yet - if it does not fly at preferred rates (which it should), they will likely not place the individual policy and only worry about the second-to-die policy. Their concern was that after the husband dies, the wife may not be able to pay the $11k/year premiums for the second to die policy. Both John Hancock and Lincoln National are right around $13,800 per year for the GUL. Husband will own the policy on himself with wife as beneficiary. The 2nd to die policy premium is so cheap because the spouse is 20 years younger, and has a $1 million death benefit for estate tax purposes. The owner and beneficiary of the second-to-die policy is an irrevocable trust. If husband gets approved at $13k/year for the individual policy, the proceeds will be used by the wife to continue gifting the second-to-die premiums to the trust, which will pay the second-to-die premiums. Hope that makes sense.
Posted: Sat Apr 18, 2009 09:24 pm Post Subject:
That was me making the above post, guess I wasn't logged in.
Posted: Sun Apr 19, 2009 03:24 am Post Subject:
hi dgoldenz,
The above case explained by you is surely a nice example of an exception.These cases do happen but rarely.But still i will appreciate that in a way, suppose somebody asks me whether some insurance company can offer a life insurance to 80 yr old guy/gul.? so my answer will be yes.
You have explained that it is affordable to go for $13,800 per year premium.But i honestly think that it is not affordable to each and every guy/gul who is a senior citizen.
Thanks
Keep in touch :wink:
Posted: Sun Apr 19, 2009 03:49 am Post Subject:
You have explained that it is affordable to go for $13,800 per year premium.But i honestly think that it is not affordable to each and every guy/gul who is a senior citizen.
Of course not....very few people at that age can afford such a large sum of money for just insurance. Keep in mind that while the husband (the 80 year old) is living, he is paying the $13,800 per year for the personal coverage in addition to the $11,000 per year for the second-to-die policy for a total annual outlay of nearly $25k. The idea is that once he is gone, the wife receives $250k income tax free to be used for the remaining second-to-die premiums. That amount would buy approximately 22 years of premiums after his death without consideration for interest earned on the principal.
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