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Life Settlements The horrible,The Good And The Bad
When Life Settlements are Mentioned you’re bound to hear strong opinions about it, both positive and negative. The life settlement market has become an industry that moves millions of dollars in recent years. If you are over 50 and own a term life insurance policy you no longer need it, this could mean money in your pockets.
First, the horrible
Each market have those who try to “game†the system. Many older people have been victims of agents with a tempting offer of free money. The senior is induced to buy life insurance without a legitimate need for such coverage. The insured is expected two years for the policy becomes incontestable, sell the policy, and shares the profits with the other parties to the transaction. This is called “foreign origin of life insurance (Stoli).
There are two main concerns that every individual should have in mind when thinking about that operation. First, there is no insurable interest. That is, the applicant has no legitimate purpose. Second, many states are considering or have made this type of illegal transaction. Stoli corrupt transactions market by changing the basis on which premiums are determined.
The Bad
Many people who have taken out life insurance for the legitimate purposes may need money because of a terminal illness. People who are induced to sell policies in this situation enter into what is known as viatical settlements, which sells your policy for a percentage of the sum insured to obtain money to cover immediate expenses. These transactions became popular at a time when a diagnosis of AIDS meant a short life expectancy. viatical settlements allowed the terminally ill to receive cash during his last days.
Today, the insurance industry has made it unnecessary for such sales policies sold in recent years. Most policies include a free rider that allows a substantial part of the insured amount to be paid to the terminally ill before death with sufficient documentation. This eliminates the need for a viatical settlement, and gives the insured and the beneficiaries the full value of the policy.
The Good
There are many legitimate reasons to consider selling a life insurance policy that was purchased in good faith for the protection against death of the insured. The term policies are purchased for protection for a limited period. In general, these policies are written to protect family members who depend on the income of the insured, or in business situations to protect the company for the loss of an owner. Once you get the original purpose and not because of a change in circumstances, a life settlement may be a good option.
Another reason to consider a life settlement would be affordability. If the premium and can not be paid due to a negative change in circumstances, the owner can greatly benefit from the sale of policies through an operating life settlement. Today more than ever, this is unfortunately the situation many older people are in.
To be considered for establishment of the term life policy should be convertible to a universal life policy. While some policies of whole life or variable life are suitable for purchase, usually this is not true. If you own a long-term policy, simply check the contract to determine when and what their current policy can be converted. If you are unsure, your agent or insurance company can help you determine if your policy is convertible.
Many factors affect the possibility of selling a policy in a life settlement. In general, the insured must be over 65 years and without a terminal illness. Remember that the insurance company makes a life settlement unnecessary in a state of terminal illness. An agent familiar with life settlements can help you determine if this type of operation is right for you.
Steps that you should take
If you are considering a life settlement, speak to an agent who is well versed in the art. They will help you select an experienced broker. There are so many life settlement companies that will help in selling your policy, but as with any transaction “let the buyer beware.†There are several important considerations when choosing a broker for life settlement. You want to deal with a company that has been in business for a relatively long time, enough to build a reputation. You have to see how it handles the transaction in the market. Orders that are requested? How transparent is the transaction? Can you see the various offers for your policy? How are funds allocated?
While there are always questions that are specific to your situation, this article should help you understand the general nature of the operation of life settlement. A good agent will help you navigate through this maze to produce the best result for you.
Find more Insurance articles at http://www.insurancescouts.info/
charles shaw provide free information about insurance company's
First, the horrible
Each market have those who try to “game†the system. Many older people have been victims of agents with a tempting offer of free money. The senior is induced to buy life insurance without a legitimate need for such coverage. The insured is expected two years for the policy becomes incontestable, sell the policy, and shares the profits with the other parties to the transaction. This is called “foreign origin of life insurance (Stoli).
There are two main concerns that every individual should have in mind when thinking about that operation. First, there is no insurable interest. That is, the applicant has no legitimate purpose. Second, many states are considering or have made this type of illegal transaction. Stoli corrupt transactions market by changing the basis on which premiums are determined.
The Bad
Many people who have taken out life insurance for the legitimate purposes may need money because of a terminal illness. People who are induced to sell policies in this situation enter into what is known as viatical settlements, which sells your policy for a percentage of the sum insured to obtain money to cover immediate expenses. These transactions became popular at a time when a diagnosis of AIDS meant a short life expectancy. viatical settlements allowed the terminally ill to receive cash during his last days.
Today, the insurance industry has made it unnecessary for such sales policies sold in recent years. Most policies include a free rider that allows a substantial part of the insured amount to be paid to the terminally ill before death with sufficient documentation. This eliminates the need for a viatical settlement, and gives the insured and the beneficiaries the full value of the policy.
The Good
There are many legitimate reasons to consider selling a life insurance policy that was purchased in good faith for the protection against death of the insured. The term policies are purchased for protection for a limited period. In general, these policies are written to protect family members who depend on the income of the insured, or in business situations to protect the company for the loss of an owner. Once you get the original purpose and not because of a change in circumstances, a life settlement may be a good option.
Another reason to consider a life settlement would be affordability. If the premium and can not be paid due to a negative change in circumstances, the owner can greatly benefit from the sale of policies through an operating life settlement. Today more than ever, this is unfortunately the situation many older people are in.
To be considered for establishment of the term life policy should be convertible to a universal life policy. While some policies of whole life or variable life are suitable for purchase, usually this is not true. If you own a long-term policy, simply check the contract to determine when and what their current policy can be converted. If you are unsure, your agent or insurance company can help you determine if your policy is convertible.
Many factors affect the possibility of selling a policy in a life settlement. In general, the insured must be over 65 years and without a terminal illness. Remember that the insurance company makes a life settlement unnecessary in a state of terminal illness. An agent familiar with life settlements can help you determine if this type of operation is right for you.
Steps that you should take
If you are considering a life settlement, speak to an agent who is well versed in the art. They will help you select an experienced broker. There are so many life settlement companies that will help in selling your policy, but as with any transaction “let the buyer beware.†There are several important considerations when choosing a broker for life settlement. You want to deal with a company that has been in business for a relatively long time, enough to build a reputation. You have to see how it handles the transaction in the market. Orders that are requested? How transparent is the transaction? Can you see the various offers for your policy? How are funds allocated?
While there are always questions that are specific to your situation, this article should help you understand the general nature of the operation of life settlement. A good agent will help you navigate through this maze to produce the best result for you.
Find more Insurance articles at http://www.insurancescouts.info/
charles shaw provide free information about insurance company's
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