Life settlement - Is it worth going for a life settlement?
by Guest » Tue Jan 06, 2009 10:52 am
Where do we sell our life insurance policies? What do the life settlement buyers look for?
Total Comments: 14
Posted: Sun Jan 11, 2009 03:08 am Post Subject: insurance
Thanks for the clarity, DGOLDEN. What you said DOES make sense. However.......you would think if you KNOW you are in bad Health, you may want to keep the policy for a 'security blanket'. Knowing you would really need it.
Posted: Sun Jan 11, 2009 03:02 pm Post Subject:
SDC - People who sell policies are not necessarily always in horrible health. Even someone who is now considered "standard" but was previously considered "Preferred Plus" may be able to sell the policy for a large offer depending on the case. If the person is still considered standard, they could use the proceeds (often $100k+ on a large policy) to purchase a new term or universal life policy to guarantee death benefits forever while the payment from the life settlement is what is funding the yearly premiums.
EX: I work for Corporation ABC and they have a $10 million key person insurance policy on me, then they let me leave the company and give me the option of retaining the $10 million of coverage on my own. I don't feel that I need $10M of insurance, but the company felt that is what I am worth. Perhaps I would only like a $3M policy. If I can sell the $10M policy for $1 million cash and the premiums on the new policy are $50k/year, I have 20 years of premiums already paid that cost me nothing. This is just one example, there are plenty of others.
Posted: Mon Jan 12, 2009 02:32 am Post Subject: insurance
OOOOIIIIIIICCCCCCCCCCC!! Okey Dokey!! I catcha!...actually DOES makes sense why someone would want to do that. Good example..thanks.
Posted: Mon Jan 12, 2009 09:59 am Post Subject:
Life settlement is indeed a very good option for the senior citizens to earn cash.
There are times when the senior citizens may need immediate money and would be in position wherein it becomes difficult for them to pay for the premiums. Right then there is no other option for them but to sell-off their life policies.
Posted: Sun Jan 11, 2009 03:08 am Post Subject: insurance
Thanks for the clarity, DGOLDEN. What you said DOES make sense. However.......you would think if you KNOW you are in bad Health, you may want to keep the policy for a 'security blanket'. Knowing you would really need it.
Posted: Sun Jan 11, 2009 03:02 pm Post Subject:
SDC - People who sell policies are not necessarily always in horrible health. Even someone who is now considered "standard" but was previously considered "Preferred Plus" may be able to sell the policy for a large offer depending on the case. If the person is still considered standard, they could use the proceeds (often $100k+ on a large policy) to purchase a new term or universal life policy to guarantee death benefits forever while the payment from the life settlement is what is funding the yearly premiums.
EX: I work for Corporation ABC and they have a $10 million key person insurance policy on me, then they let me leave the company and give me the option of retaining the $10 million of coverage on my own. I don't feel that I need $10M of insurance, but the company felt that is what I am worth. Perhaps I would only like a $3M policy. If I can sell the $10M policy for $1 million cash and the premiums on the new policy are $50k/year, I have 20 years of premiums already paid that cost me nothing. This is just one example, there are plenty of others.
Posted: Mon Jan 12, 2009 02:32 am Post Subject: insurance
OOOOIIIIIIICCCCCCCCCCC!! Okey Dokey!! I catcha!...actually DOES makes sense why someone would want to do that. Good example..thanks.
Posted: Mon Jan 12, 2009 09:59 am Post Subject:
Life settlement is indeed a very good option for the senior citizens to earn cash.
There are times when the senior citizens may need immediate money and would be in position wherein it becomes difficult for them to pay for the premiums. Right then there is no other option for them but to sell-off their life policies.
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