Premium financed life insurance

by Guest » Mon Jul 30, 2007 10:41 pm
Guest

Has any one seen this ad for Insurance Agents Wanted. If so what do you think, for real or scam.



You will be enrolling people in premium financed life insurance. This

enables the client to attain at least $1,000,000 in life insurance

without a penny out of their pocket.



A bank or investment company pays the premiums. Why? - because it

profits them. They finance it with the expectation of earning a

return at some point in the future where there can be a profit gained

during the life of the insured by selling it as a "Life Settlement" -

or at the death of the insured where they are paid their interest and

the insider's beneficiary is paid the remaining.



The insured (your client) will benefit by having a policy that will

pay his/her beneficiary upon death less the financed premiums paid

back to the bank. There may be other options as they can sell their

policy after 2 to 5 years at a profit as a Life Settlement and profit

from this as well.



The financing is "non-recourse" financing which means that the only

security is the policy itself.



This is a total win-win-win-win scenario:



1. Your client wins since he/she gets a benefit that costs him nothing

out of pocket (we cannot ever say its "FREE").



2. The bank or investor wins since they get a great return on their

investment that is fully secured by major insurance carriers.



3. The insurance carriers win since they get premiums, which drives their

profits.



4. You win by earning huge (and I do mean huge) commissions.

Total Comments: 7

Posted: Tue Jul 31, 2007 10:02 am Post Subject: doesn't sound okay!

Yeah this sounds exactly like the one which took my cousin Ruby for a ride...she stood firm in her belief that a certain body had taken responsibility of the premiums....so when the time came for the need...she didn't get anything out of her claim since other two parties involved had long got dissolved without any prior intimation!

Posted: Tue Jul 31, 2007 10:11 am Post Subject: Be sure..

Hi yeah, the best way to judge the benefit of getting into such a premium financed life insurance program is to request papers that reflect the features of such a policy!
If the insurance agents or the insurer is genuine then it would be easier for you to identify the authorized signatory of such a proposal through immediate consultations with your attorney. But beware of the net crooks!
Regards, Evan

Posted: Tue Jul 31, 2007 10:22 am Post Subject:

Hi there,

You will often come across with such premium financed life insurance advertisements on net or on flyers but it is quite difficult to probe their authenticity. They often offer very lucrative deals, which are hard to resist. But think twice before committing yourself.

However, from the advertisement only it is very difficult to comment whether it is real or scam. If you are really interested in the advertisement, check out the authenticity of the advertiser from all possible sources.

Take care and stay out of traps.

Juanita

Posted: Thu Sep 13, 2007 02:17 am Post Subject: i saw that ad also..

I also came across that ad and will be cheking them out. I have heard of premium financed life insurance before and I believe it is a legit biz if you can explain it to the clients...and you have the right clients... but I will be doing my D&D to make sure I dont get thrown in the slammer for something illegal.

Posted: Thu Oct 04, 2007 05:31 am Post Subject:

My understanding is that the insurance industry is starting to wake up and if they see you submitting policies (with the intent of selling them after the window) you'll get yanked big time.

Posted: Thu Oct 04, 2007 04:02 pm Post Subject:

some of these programs are terrible and some are good. you have to be careful about the rules regarding selling the policy and how much of it the investor collects etc.

Posted: Wed Nov 14, 2007 02:00 am Post Subject:

Premium Financing is not going anywhere. The larger investment banks are getting in on the action. For example, Bearn Stearn is rolling out a new PF program in 2008.

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