by rjames » Wed Dec 05, 2007 01:48 am
I had a vacation with my family for two weeks in the Philippines. While I was there, a close friend of my mother ask a favor from her. Here is the story.
This friend of my mother, let's call her Y, have applied for an insurance. The contract was for her to pay her premiums for 5 years, she will be on the 3rd year next year. Her problem was that she could not afford to continue paying the premiums. She is a good payer but cannot continue paying anymore because of bad circumstances happened to her. So she wanted to sell the contract to us. My mother told me about this and she wanted me to buy it. I continue paying for the rest of the 3 years and pay the whole amount that Y have paid in 2 years.
Is it possible to buy her contract and change the names in the contract? That was my first time to learn that insurance contracts could be sold. I told my mother that I would buy it but transfer the contract to my youngest brother. It is a Health Insurance and Pension Plan at the same time. The premiums of her contract are very low compare to the premiums if I will sign a new contract. Please enlighten me on this thing. What are the possible problems it might occur?
This friend of my mother, let's call her Y, have applied for an insurance. The contract was for her to pay her premiums for 5 years, she will be on the 3rd year next year. Her problem was that she could not afford to continue paying the premiums. She is a good payer but cannot continue paying anymore because of bad circumstances happened to her. So she wanted to sell the contract to us. My mother told me about this and she wanted me to buy it. I continue paying for the rest of the 3 years and pay the whole amount that Y have paid in 2 years.
Is it possible to buy her contract and change the names in the contract? That was my first time to learn that insurance contracts could be sold. I told my mother that I would buy it but transfer the contract to my youngest brother. It is a Health Insurance and Pension Plan at the same time. The premiums of her contract are very low compare to the premiums if I will sign a new contract. Please enlighten me on this thing. What are the possible problems it might occur?
Posted: Wed Dec 05, 2007 09:34 am Post Subject: I wonder if its possible..
The premiums of her contract are very low compare to the premiums if I will sign a new contract. Please enlighten me on this thing.
I don't know even if such a transfer of policy is possible, whether you'd be allowed to retain the same premium-rate or not!!!
I'm saying this because the premium rate is dependent on a number of things - eg. Tax payments, income, age, health record etc.
Hope you'd go through the papers well, before you sign-up for this sort of a transfer. Thanks, ArindamSenIndies
Posted: Wed Dec 05, 2007 10:47 am Post Subject: is it a known thing in the US ?
Hi there!
Even I haven't heard of this transfer system anywhere..is it prevalent in the US ?
casanovamuletti
Posted: Wed Dec 05, 2007 12:09 pm Post Subject:
Transferring insurance contract ……I guess that's not a possibility. As someone has mentioned above insurance premium depends on many factors like- the applicant's income, age, gender and so forth.
Issuing an insurance policy is an underwriting decision and the underwriter considers the above mentioned factors to ascertain the risk of insuring the individual. And, no two person can bear the same risk of insuring from the insurer's point of view.
Mull over these following facts before actually accepting the proposal:
The type of risks associated with insuring you are different from hers. And its quite reflected in your own terms.
The premiums of her contract are very low compare to the premiums if I will sign a new contract.
Think, why so?
Next, the policy was taken out on her name and has a named beneficiary. Therefore, it may put forward some legal difficulties in the event of claim processing. If you try to change the name on the policy, again, the premium rates won't remain the same for you.
Sure, you can gain out of this deal but consider all the facets before actually committing for it.
Rupert
Posted: Wed Dec 05, 2007 01:28 pm Post Subject:
Next, the policy was taken out on her name and has a named beneficiary. Therefore, it may put forward some legal difficulties in the event of claim processing. If you try to change the name on the policy, again, the premium rates won't remain the same for you.
This is definitely what I needed this time. I would contact my mother and talk with the insurance company's representative. I don't want to waste money on insurance that will just give me headaches in the future. Insurances are meant to be security whatever happens in the future.
Thanks a lot guys for your explanations.
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