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In Reply to: insights wanted posted by natalie on December 11, 2003 at 14:38:09:
: I just discovered this board today and am impressed by all of the collective wisdom. I am interested in your views on a specific situation: in early 2001 an 87 year old man went to a financial planning seminar. He then entered into a financial planning agreement. Part of the financial plan recommended an Irrevocable Life Insurance Trust. A single premium life insurance policy was purchased with a premium of $330,000. The policy was guaranteed for 5 years with a death benefit of $396,000. At the time, his net worth was just over $1 million, including the value of his home and the value of existing life insurance policies. Now he does not have adequate funds to live comfortably. The financial planners, who also recommended and sold the policy, continue to believe that they provided him a good financial plan and that the policy is a good decision. Thoughts?
***It sounds as though there may be some suitability issues. Find out if the gentleman has any written plan provided by the planners.
If he is a member of AARP, check and see if they have any legal benefits for members.
If he had the assets to pluck 330k for a policy and then 2 or 3 years later not to be able to handle basic living expenses something doesn't seem right.
He may want to get a second opinion and contact a attorney. Yet being up there in age the case may last longer than him.
Who is his beneficiary?
I don't know what his situation is , but he needs to make sure his Will is up to date, and he needs to look at a Living Will and Durable Powers of Attorney(Health and Financial). If he becomes disabled someone will have to have the power to keep this issue to the fire.
So basically, have him contact an Attorney. abusing Seniors is a No No in the financial field.
If the firm doesn't want to help, a phone call to a newspaper or TV station can do wonders.
Senior Abuse and Identity theft are good stories for the media. Good Luck