Life settlement : Are you eligible to do a life settlement?
by Guest » Tue Jan 12, 2010 07:46 am
I'm 66 and my finances are now limited. Would it be a good option to go for a life settlement?
Total Comments: 35
Posted: Thu Jan 14, 2010 10:11 pm Post Subject:
Yes, speaking of accuracy the suggestion that one need be at least 70 is completely inaccurate.
Posted: Thu Jan 14, 2010 10:28 pm Post Subject:
To the original poster,
There are a lot of questions I don't know the answers to before I could suggest you take one course of action. It's probably not a conversation you'd necessarily like to have in public, but if you are...
1.) What type of policy?
2.) What kind of cash value do you have?
3.) What's your cost basis?
4.) This life contract has not been turned into a modified endowment conract, correct?
5.) How much money from the cash value do you think you need?
6.) Do you see a situation coming that would have you put the money back in?
7.) Do you still pay premiums?
Taking loans may not have nearly the impact that you think it does. If you answer those questions, I can help you better assess this situation.
Posted: Fri Jan 15, 2010 06:03 am Post Subject:
To the original poster
It's a WL policy with face amount= $50,000 with a low cash value. I'd called my agent to have a small discussion regarding things and no, it has not been turned into a modified endowment contract. I do pay premiums (lower than 8%).
Posted: Fri Jan 15, 2010 03:19 pm Post Subject:
Insurance teacher, for the record, there is more than one person who is posting as Guest 1. That post isn't from me. I'm the person who used to post here as Insurance Expert. I stopped posting as a registered user simply because I'm having a problem with my computer and it won't remember my password and I can't log in.
Posted: Fri Jan 15, 2010 05:03 pm Post Subject:
I'm the person who used to post here as Insurance Expert. I stopped posting as a registered user simply because I'm having a problem with my computer and it won't remember my password and I can't log in.
Good, I'm glad that wasn't you. Your history here is a very positive one and you contribute greatly to the forum...I'd hate to have to blow-up a good one! Thanks for informing me.
Bummer on the computer thing...sounds like a virus at the boot level. What kind of computer protection are you using? Maybe we can help there even though it isn't insurance!
InsTeacher 8)
Posted: Sat Jan 16, 2010 01:52 am Post Subject:
"It's a WL policy with face amount= $50,000 with a low cash value. I'd called my agent to have a small discussion regarding things and no, it has not been turned into a modified endowment contract. I do pay premiums (lower than 8%)."
WL policies are hard to sell because they are very expensive. Also you would only qualify for a small face program. This will limit your options. Typically 66 is a very young age for a Life Settlement. 65 normally being the minimum. Your life expectancy needs to be less then 20 year....preferably less then 15. without knowing more about your situation it is difficult for anyone to say if it will be possible to sell this policy. there are too many variable when it comes to Life Settlements.
To clear up the difference between Life Settlements and Viatical settlements. In the industry Viaticals are Life Settlements when the life expectancy of the client is less the 24 month (2 years). Often the accelerated death benefit is a better option in these cases. A Life Settlement is when the life expectancy is over 24 months.
In Insurance code and the law all settlements are often referred to as Viatical settlements.
Posted: Sat Jan 16, 2010 04:44 am Post Subject:
It's a small bet I suppose with that face amount. They may not offer much more than what you have in available cash value.
Being WL isn't a bad thing, and life settlement companies are interested. I'm not sure what lower than 8% is supposed to mean, please clarify if you could.
You haven't said anything that would make anyone think you aren't long for the world, so I'm guessing at least average mortality assumption at this point, which isn't going to help.
At this point, I don't see a life settlement as particularly useful to you, but there's information that remains unknown that could sway this.
Posted: Sat Jan 16, 2010 06:42 am Post Subject:
A $50k whole life policy at age 66 isn't going to get any offers unless you are practically on your deathbed....life settlement companies have bigger fish to fry, no offense.
Posted: Sat Jan 16, 2010 09:42 am Post Subject:
Hey Marpol,
I guess the life expectancy of the OP is much more since he's stressed over the fact that he doesn't have any existing health problem.
there are too many variable when it comes to Life Settlements.
Please clarify it a bit!
Posted: Sat Jan 16, 2010 10:26 am Post Subject:
In the industry Viaticals are Life Settlements when the life expectancy of the client is less the 24 month (2 years).
I guess viatical settlements involve policy owners who're terminally ill. On the other hand, life settlements involve policy owners who're health impaired.
Posted: Thu Jan 14, 2010 10:11 pm Post Subject:
Yes, speaking of accuracy the suggestion that one need be at least 70 is completely inaccurate.
Posted: Thu Jan 14, 2010 10:28 pm Post Subject:
To the original poster,
There are a lot of questions I don't know the answers to before I could suggest you take one course of action. It's probably not a conversation you'd necessarily like to have in public, but if you are...
1.) What type of policy?
2.) What kind of cash value do you have?
3.) What's your cost basis?
4.) This life contract has not been turned into a modified endowment conract, correct?
5.) How much money from the cash value do you think you need?
6.) Do you see a situation coming that would have you put the money back in?
7.) Do you still pay premiums?
Taking loans may not have nearly the impact that you think it does. If you answer those questions, I can help you better assess this situation.
Posted: Fri Jan 15, 2010 06:03 am Post Subject:
To the original poster
It's a WL policy with face amount= $50,000 with a low cash value. I'd called my agent to have a small discussion regarding things and no, it has not been turned into a modified endowment contract. I do pay premiums (lower than 8%).
Posted: Fri Jan 15, 2010 03:19 pm Post Subject:
Insurance teacher, for the record, there is more than one person who is posting as Guest 1. That post isn't from me. I'm the person who used to post here as Insurance Expert. I stopped posting as a registered user simply because I'm having a problem with my computer and it won't remember my password and I can't log in.
Posted: Fri Jan 15, 2010 05:03 pm Post Subject:
I'm the person who used to post here as Insurance Expert. I stopped posting as a registered user simply because I'm having a problem with my computer and it won't remember my password and I can't log in.
Good, I'm glad that wasn't you. Your history here is a very positive one and you contribute greatly to the forum...I'd hate to have to blow-up a good one! Thanks for informing me.
Bummer on the computer thing...sounds like a virus at the boot level. What kind of computer protection are you using? Maybe we can help there even though it isn't insurance!
InsTeacher 8)
Posted: Sat Jan 16, 2010 01:52 am Post Subject:
"It's a WL policy with face amount= $50,000 with a low cash value. I'd called my agent to have a small discussion regarding things and no, it has not been turned into a modified endowment contract. I do pay premiums (lower than 8%)."
WL policies are hard to sell because they are very expensive. Also you would only qualify for a small face program. This will limit your options. Typically 66 is a very young age for a Life Settlement. 65 normally being the minimum. Your life expectancy needs to be less then 20 year....preferably less then 15. without knowing more about your situation it is difficult for anyone to say if it will be possible to sell this policy. there are too many variable when it comes to Life Settlements.
To clear up the difference between Life Settlements and Viatical settlements. In the industry Viaticals are Life Settlements when the life expectancy of the client is less the 24 month (2 years). Often the accelerated death benefit is a better option in these cases. A Life Settlement is when the life expectancy is over 24 months.
In Insurance code and the law all settlements are often referred to as Viatical settlements.
Posted: Sat Jan 16, 2010 04:44 am Post Subject:
It's a small bet I suppose with that face amount. They may not offer much more than what you have in available cash value.
Being WL isn't a bad thing, and life settlement companies are interested. I'm not sure what lower than 8% is supposed to mean, please clarify if you could.
You haven't said anything that would make anyone think you aren't long for the world, so I'm guessing at least average mortality assumption at this point, which isn't going to help.
At this point, I don't see a life settlement as particularly useful to you, but there's information that remains unknown that could sway this.
Posted: Sat Jan 16, 2010 06:42 am Post Subject:
A $50k whole life policy at age 66 isn't going to get any offers unless you are practically on your deathbed....life settlement companies have bigger fish to fry, no offense.
Posted: Sat Jan 16, 2010 09:42 am Post Subject:
Hey Marpol,
I guess the life expectancy of the OP is much more since he's stressed over the fact that he doesn't have any existing health problem.
there are too many variable when it comes to Life Settlements.
Please clarify it a bit!
Posted: Sat Jan 16, 2010 10:26 am Post Subject:
In the industry Viaticals are Life Settlements when the life expectancy of the client is less the 24 month (2 years).
I guess viatical settlements involve policy owners who're terminally ill. On the other hand, life settlements involve policy owners who're health impaired.
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