My Dad is 84, in really good health and would pass a medical

by foodguy4 » Sun Jul 11, 2010 05:46 am

My Dad is 84, in really good health and would pass a medical exam as he has no risk factors.

He does have a well controlled seizure disorder. Would this exclude him from a life policy?

If not, what sort of premiums would he expect to pay? If this site allows, I'm interested in purchasing from this community.

Thanks,Jeff

Total Comments: 8

Posted: Sun Jul 11, 2010 09:38 pm Post Subject:

What is the seizure disorder? Epilepsy? How much coverage are you look for? Will you be the owner and beneficiary, or is this to be owned by him for a spouse and/or kids? What state are you/he in?

If he could get a standard risk class, which can be difficult at age 84, premiums you could expect on a policy guaranteed forever (generally the only type available at that age):

$250k benefit - $23-30k/year
$100k benefit - $9300-12k/year
$50k benefit - $5-7k/year
$25k benefit - $3500/year

Posted: Mon Jul 12, 2010 12:08 am Post Subject:

He's in good health except....

Need a lot more information on the seizure disorder. Also keep in mind that what the profession of medicine would consider a healthy 84 year old could is completely different from what the Life Insurance industry considers a healthy 84 year old.

In the eye of the insurance industry, at 84 he's lived past life expectancy, they'll decline if they don't like the way he signed his name (ok that's a bit of hyperbole).

What Dgoldenz has shown you for rates is a good place to start in getting an idea of what the cost of such a purchase will be. Keep in mind that a rating is very possible, and price will go up from there.

Secondary Guaranteed Universal Life is likely the best place to look for him (Dgoldenz just fell out of his chair haaaa!). Whole Life insurance is another option, but at 84, you stop doing things that take time to really provide benefits, so I'd advise against it.

Posted: Mon Jul 12, 2010 12:52 am Post Subject:

I have almost same opinion expressed by BNTRS,(to start) paying premium at the age for 84 to life insurance company is really a not advisable.Although it is beneficial but surely not a best deal.

Posted: Mon Jul 12, 2010 05:18 am Post Subject:

If someone age 84 is considering life insurance for any purpose other than an "estate planning" purpose (to provide money to pay estate taxes and related expenses following their death), they've really waited way too long to start considering life insurance.

Look at the premiums dgoldenz has hinted at. How many years of paying premiums to equal the death benefit? 7 to 10 or so? Not the most efficient use of one's resources outside the estate planning realm. And even there, it's dicey.

Posted: Mon Jul 12, 2010 07:24 pm Post Subject:

What difference would it make if they were looking to pay estate taxes or have something for final expenses? The premiums aren't going to be any different for either application of life insurance.

Posted: Mon Jul 12, 2010 09:46 pm Post Subject:

Well, I guess it doesn't. Except in my mind, someone looking to cover "final expenses" is probably looking for $25,000 or less in coverage, while a person looking to cover estate taxes is probably looking for $1,000,000 or more. Either way, waiting until age 84 to consider life insurance is waiting a few years too long. (And "seizure disorder" usually results in a decline, anyway. I cannot imagine a standard rating for the OPs father.)

he has no risk factors.

other than impending death.

If the intent is to leave $100,000 to $500,000 to heirs as life insurance beneficiaries, the amount of premiums that would be paid is exorbitant for the need, based on age (although your suggestions about minimum premium GDBUL is noted). The person who could afford the full premium (as for a WL policy) probably has the $100,000+ on hand, so what need is there for the insurance? [The same could probably be said of a $25,000 policy]. And even if insurable, a substandard rating for seizure disorder at Table IV or higher, doubling the cost or more, makes the whole idea ridiculous.

While the standard premiums for any form of life policy for $1,000,000+ could be staggering, the purpose for the insurance is to provide cash to avoid unnecessary or untimely liquidation of estate assets, which from all appearances, is going to be a reality once again come 1/1/11.

Posted: Tue Jul 13, 2010 03:48 am Post Subject:

Hello,

Thanks for the prompt and informative replies. I realize that I forgot to mention my state-California and that I would be the beneficiary.

I agree that it is doubtful my octogenarian dad could gain insurance at this late date.

Quick follow up-which would be the best place to find non-exam FE/Burial insurance for good ole' dad?

Thank you for what you do-where would we be without insurance :)

Posted: Tue Jul 13, 2010 03:58 am Post Subject:

There are only a couple of final expense no-exam companies at his age and it only takes ~4 years to pay the entire death benefit in premiums (known as self-insuring). If he will take an exam, the $25k or $50k coverage is the best option, assuming he can get a standard rate (possible with epilepsy, believe it or not).

It would take 7 years to self-insure with the $25k policy and 10 years to self-insure with the $50k policy. More bang for the buck with $50k, but you have to be able to write the $5k/year check. We're licensed in California if you want to shoot me an e-mail for some help or to discuss further. My email address is david at terminsurancebrokers dot com. Phone # is 1-877-656-1436

My Dad is 84, in really good health and would pass a medical

Total Comments: 8

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