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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

372.0. "need life insurance for an older person" by LEDS::SIMARD (There's no traffic jam on the extra mile!) Wed Feb 03 1993 14:25

    How do I get a life insurance policy, REASONABLY priced, for a 62 year
    old person?  He's never had insurance before and at this rate he's
    going to have to live forever because he can't afford to die.  
    
    We might be able to afford $40.00 a month and would like a $100,00.00
    policy to cover the mortgage and incidentals.
    
    There is no insurance on his job after he leaves it and there are no
    convertible rights.
    
    thanks
    
    
    
    
T.RTitleUserPersonal
Name
DateLines
372.1thru IEEE?SCHOOL::DESAIWed Feb 03 1993 15:172
    Make him IEEE member and buy their term insurance. If I can find more
    details, I will post (rates etc.)
372.2ELWOOD::KAPLANLarry Kaplan, DTN: 237-6872Wed Feb 03 1993 16:178
    Carefully research IEEE before you go this route.  Their rates are
    excellent, but they are quite picky about their acceptance criteria.

    For example, they immediately rejected my wife because she has 
    multiple sclerosis, a disease which researchers believe has no effect
    on life span.

    L.
372.3Some factsSLOAN::HOMWed Feb 03 1993 16:3118
Based on 1988 data, the expected number of deaths for
a white male age 62 is 18 per 1,000 males.

Assuming zero administrative costs, a $100K policy would cost
each member of that population $150 month.  This assumes all 18
individuals died at the end of 12 months. Typically insurance
companies charge about 1.5x that rate.

Re: -.1
If you work through the rates for IEEE insurance, their mortality
rates assumptions are lower than that for the average population.
That's the reason for their low rates and correspondingly high
rejection rate. As a person with IEEE insurance, I want the 
toughest acceptance criteria possible.  It's for this reason
that the Digital life insurance rates are so high - there's no
selection criteria.

Gim
372.4THEIR IS A BETTER WAYWFOV11::CHANGWed Feb 03 1993 16:527
    RE LIFE INSURANCE
    
    AT 62 YEARS OF AGE HOW LONG DOES HE WANT TO BE INSURED. YOU WOULD BE
    ABLE TO GET 100K FOR ABOUT $118 PER MONTH, ASSUMING THAT HE IS NON
    SMOKER AND IN GOO HEALTH. IF I CAN ANSWER ANYMORE QUESTIONS CALL
    413-527-5507 OR 242-2895 TKS 
    ROGER
372.5forget IEEELEDS::SIMARDThere's no traffic jam on the extra mile!Thu Feb 04 1993 17:457
    Forget IEEE, he's just a blue collar "joe", however, he doesn't smoke
    and is in great health. 
    
    I'm just a secretary and he's blue collar so let's keep it in relation
    to that.  There's no engineering salary here.  
    
    
372.6If from Mass. try SBLILEDS::VESESKISThu Feb 04 1993 19:3810
    
            If you are a Mass. resident then you may want to look into SBLI
    insurance.  Most banks carry and there rates tend to be very low.
    He will be required to take a physical but if he is in good shape
    and a non-smoker then his chances will be good of securing insurance. 
    I don't know the rate structure for a 62 year old but I think you find it
    very competitive to other insurance companies.
    
    
        Ken
372.7SBLI cost for $100,000 at age 62MPGS::BEAULIEUWed Feb 17 1993 15:0316
    
    According to the SBLI rates chart (that I have here in front of me) the
    rate for a 62 year old non-smoker is $806.00 per year for $100,000 
    of insurance which works out to 67.17 per month. This is for a "Yearly
    Renewable Term Policy" which means that it is "automatically renewed
    each year up to age 70" (however the premium goes up each year up to
    $1391.00 at age 69). "The policy may be converted to a permanent form
    of life insurance, 
    
    Has he considered what his family would REALLY need to maintain thier 
    current lifestyle if he were to die suddenly (taking into consideration
    any wages, pensions, social security etc that they might receive). If 
    the "mortgage and incidentals" do not total $100,000 he may want to
    consider a smaller policy. For example, the same policy for $50,000 
    would cost 465.00 (or $38.75 per month) at age 62 and $808.00 at age 69.
        
372.8If we had only known...CADSYS::FLEECE::RITCHIEElaine Kokernak RitchieWed Feb 17 1993 15:0710
As a side note, it is much easier to get SBLI for $99,000 than it is to get 
$100,000.  We have recently applied for $100,000 for my husband.  They are giving
him endless grief about his borderline heart results.  The medical people who 
have been visiting him for various tests have all said this would not have
happened if we had only asked for $99,000.

I wish someone had told us that at some point.  If we get turned down, we
are going to reapply for a lesser amount and see what happens.

Elaine
372.9they came for the physical the other nightLEDS::SIMARDThere's no traffic jam on the extra mile!Wed Mar 03 1993 15:5719
    Well, we went with SBLI, as in a previous note it's only $67 +- a
    month for the first year and the second year through the 5th it
    actually goes down.  The only problem is that it's good for 15 years
    and only convertible to a specific type of policy which costs an awful lot
    for the same coverage.  So, maybe he'll die within 15 years?
    
    They came out for the physical the other night.  He's really healthy
    and doesn't smoke or have colesteral or blood pressure problems.  They
    do a urine to see if he smokes, I guess they can find the nicotine in
    it.  They did not do an HIV test.  They specifically said it didn't
    include one.  I understand they want you to go to your own doctor for
    that.  I guess it's another way of their not spending the money for
    it.
    
    So, looks like we are on our way with this.
    
    Thanks