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: Sat Jan 16, 2010 11:07 am Post Subject:
First of all, we should analyze our reasons to consider selling our life insurance. The only good reasons for selling one's policy could be circumstances when he doesn't need coverage, when there are no beneficiaries or his beneficiaries don't require it, the insurance cost has become unreasonably high.
Posted: Sat Jan 16, 2010 01:07 pm Post Subject:
Posted: Sat Jan 16, 2010 01:07 pm Post Subject:
Posted: Sat Jan 16, 2010 03:17 pm Post Subject:
Guest 1, just man up and quit making excuses. Nobody believes you. If your computer doesn't remember your password, you must have been kicked off this forum. Either register under a new name like Insurance Expert 1 or just go away. This forum is sick and tired of your inaccuracies. We would be better off without you.
Posted: Sun Jan 17, 2010 12:51 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.
This was my thought as well.
Posted: Mon Jan 18, 2010 10:19 am Post Subject:
life settlement companies have bigger fish to fry, no offense.
It would be a real interesting topic to discuss if you'd share what kind of life settlement offer an insurer is looking for now-a-days. How big a fish would you need to be in order to be 'lucrative' in their eyes?
Posted: Mon Jan 18, 2010 11:05 am Post Subject:
I apologize. I was wrong.
Posted: Mon Jan 18, 2010 06:54 pm Post Subject:
It would be a real interesting topic to discuss if you'd share what kind of life settlement offer an insurer is looking for now-a-days. How big a fish would you need to be in order to be 'lucrative' in their eyes?
Insurers don't do life settlements, life settlement companies do. They are investors and want a good return on their money. For a $50k policy, they won't go through a full LE (life expectancy), meaning the evaluation won't be as thorough right off the bat, leading to a lower offer. Only a few companies will even bother with a $50k policy, most won't go below $100k. Most settlement companies will not do a full LE for under $1 million death benefit unless the agent or the brokerage company pays for it. They can get pretty expensive.
To even get an offer, the settlement companies are looking for someone with 10 year or less life expectancy, less than 5% premium-to-death-benefit cost (e.g. under $5k/year on a $100k policy), and less than total outlay of 50% of death benefit based on actual life expectancy. So they either want someone in very bad health (prior heart attack, cancer, debilitating disease, etc) or someone with a Preferred Plus/Preferred risk class that has a low premium for permanent coverage, or a combination of both. Even if you have the best risk class and are 70 years old, you won't necessarily get an offer. The LE tables were recently re-evaluated and LE's were increased. The settlement companies were not getting the return they expected because they underestimated actual LE.
Posted: Tue Jan 19, 2010 08:49 am Post Subject:
Hi dgoldenz, your posts are truly informative. Would it be possible for you to share the updated LE tables with us over here?
Posted: Tue Jan 19, 2010 01:54 pm Post Subject:
LE tables are the mortality tables which were updated in 2001. Most insurers has not fully switch to these tables until a little over a year ago.
Posted: Sat Jan 16, 2010 11:07 am Post Subject:
First of all, we should analyze our reasons to consider selling our life insurance. The only good reasons for selling one's policy could be circumstances when he doesn't need coverage, when there are no beneficiaries or his beneficiaries don't require it, the insurance cost has become unreasonably high.
Posted: Sat Jan 16, 2010 01:07 pm Post Subject:
Posted: Sat Jan 16, 2010 01:07 pm Post Subject:
Posted: Sat Jan 16, 2010 03:17 pm Post Subject:
Guest 1, just man up and quit making excuses. Nobody believes you. If your computer doesn't remember your password, you must have been kicked off this forum. Either register under a new name like Insurance Expert 1 or just go away. This forum is sick and tired of your inaccuracies. We would be better off without you.
Posted: Sun Jan 17, 2010 12:51 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.
This was my thought as well.
Posted: Mon Jan 18, 2010 10:19 am Post Subject:
life settlement companies have bigger fish to fry, no offense.
It would be a real interesting topic to discuss if you'd share what kind of life settlement offer an insurer is looking for now-a-days. How big a fish would you need to be in order to be 'lucrative' in their eyes?
Posted: Mon Jan 18, 2010 11:05 am Post Subject:
I apologize. I was wrong.
Posted: Mon Jan 18, 2010 06:54 pm Post Subject:
It would be a real interesting topic to discuss if you'd share what kind of life settlement offer an insurer is looking for now-a-days. How big a fish would you need to be in order to be 'lucrative' in their eyes?
Insurers don't do life settlements, life settlement companies do. They are investors and want a good return on their money. For a $50k policy, they won't go through a full LE (life expectancy), meaning the evaluation won't be as thorough right off the bat, leading to a lower offer. Only a few companies will even bother with a $50k policy, most won't go below $100k. Most settlement companies will not do a full LE for under $1 million death benefit unless the agent or the brokerage company pays for it. They can get pretty expensive.
To even get an offer, the settlement companies are looking for someone with 10 year or less life expectancy, less than 5% premium-to-death-benefit cost (e.g. under $5k/year on a $100k policy), and less than total outlay of 50% of death benefit based on actual life expectancy. So they either want someone in very bad health (prior heart attack, cancer, debilitating disease, etc) or someone with a Preferred Plus/Preferred risk class that has a low premium for permanent coverage, or a combination of both. Even if you have the best risk class and are 70 years old, you won't necessarily get an offer. The LE tables were recently re-evaluated and LE's were increased. The settlement companies were not getting the return they expected because they underestimated actual LE.
Posted: Tue Jan 19, 2010 08:49 am Post Subject:
Hi dgoldenz, your posts are truly informative. Would it be possible for you to share the updated LE tables with us over here?
Posted: Tue Jan 19, 2010 01:54 pm Post Subject:
LE tables are the mortality tables which were updated in 2001. Most insurers has not fully switch to these tables until a little over a year ago.
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