What is Zero Premium Universal Life Insurance product? Anyone has any any idea about it. Please comment.
Total Comments: 7
Posted: Thu Nov 03, 2011 12:52 pm Post Subject:
Some life insurance companies offer a product known as zero premium life insurance, a stranger owned life insurance, investor owned life insurance investor initiated life insurance.
This type of arrangement occurs where a consumer between age 65 and age 85 is solicited to participate in the application for life insurance to be owned by a person
other than the consumer in exchange for a portion of the death benefit payable to the consumer’s beneficiary. The remainder of the death benefit is payable to the owner of
the policy. The owner of the policy pays the entire premium for the policy.
Posted: Sat Nov 05, 2011 06:39 am Post Subject:
stranger owned life insurance, investor owned life insurance investor initiated life insurance.
This is affectionately known as "STOLI" and is now unlawful in California and a growing number of other states.
Posted: Mon Nov 07, 2011 05:12 am Post Subject:
STOLI is very controversial, having a "stranger" own your life insurance is clearly leveraging the financial status of both those who need the insurance and those who are paying for the premiums. It's encouraging to see STOLI in decline and being illegal in various states.
Posted: Mon Nov 07, 2011 05:19 am Post Subject:
In my opinion STOLI should be totally banned, as this may encourage a lot of fraudulent act. All states should consider it to be illegal.
Posted: Wed Nov 09, 2011 03:31 pm Post Subject:
The NAIC developed its model STOLI act a couple of years ago. It will eventually be adopted in all states. California's version took effect on July 1, 2010.
Posted: Sun Nov 27, 2011 06:17 am Post Subject:
No longer available. You can't even find an investor to pay these premiums any more. Never participated in this market, however have a friend who owns a life settlement company that knows about this market.
Posted: Sun Nov 27, 2011 08:59 am Post Subject:
Dear TaxFree . . .
Just a bit of advice -- when you post incomplete sentence responses like: "no longer available" no one has any idea to what you are referring. There are six posts ahead of yours, and although you are probably responding to the OP, you could be commenting on any of the others instead.
For example, several of the posts address the issue of STOLI. Your response "no longer exists" would be inappropriate in reply to those posts, because STOLI does exist -- it's just unlawful in most cases in most states today.
But keep up the posting! Good to have your opinions here.
Posted: Thu Nov 03, 2011 12:52 pm Post Subject:
Some life insurance companies offer a product known as zero premium life insurance, a stranger owned life insurance, investor owned life insurance investor initiated life insurance.
This type of arrangement occurs where a consumer between age 65 and age 85 is solicited to participate in the application for life insurance to be owned by a person
other than the consumer in exchange for a portion of the death benefit payable to the consumer’s beneficiary. The remainder of the death benefit is payable to the owner of
the policy. The owner of the policy pays the entire premium for the policy.
Posted: Sat Nov 05, 2011 06:39 am Post Subject:
stranger owned life insurance, investor owned life insurance investor initiated life insurance.
This is affectionately known as "STOLI" and is now unlawful in California and a growing number of other states.
Posted: Mon Nov 07, 2011 05:12 am Post Subject:
STOLI is very controversial, having a "stranger" own your life insurance is clearly leveraging the financial status of both those who need the insurance and those who are paying for the premiums. It's encouraging to see STOLI in decline and being illegal in various states.
Posted: Mon Nov 07, 2011 05:19 am Post Subject:
In my opinion STOLI should be totally banned, as this may encourage a lot of fraudulent act. All states should consider it to be illegal.
Posted: Wed Nov 09, 2011 03:31 pm Post Subject:
The NAIC developed its model STOLI act a couple of years ago. It will eventually be adopted in all states. California's version took effect on July 1, 2010.
Posted: Sun Nov 27, 2011 06:17 am Post Subject:
No longer available. You can't even find an investor to pay these premiums any more. Never participated in this market, however have a friend who owns a life settlement company that knows about this market.
Posted: Sun Nov 27, 2011 08:59 am Post Subject:
Dear TaxFree . . .
Just a bit of advice -- when you post incomplete sentence responses like: "no longer available" no one has any idea to what you are referring. There are six posts ahead of yours, and although you are probably responding to the OP, you could be commenting on any of the others instead.
For example, several of the posts address the issue of STOLI. Your response "no longer exists" would be inappropriate in reply to those posts, because STOLI does exist -- it's just unlawful in most cases in most states today.
But keep up the posting! Good to have your opinions here.
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