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 Posted: Sat Mar 14, 2009 9:36 am Post subject: Life settlement: risks involved for investors |
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Well, I agree with the posters here that there is a fair chance of scamming involved in the process of life settlement, but I may also like to point out to the community that the investors too are undertaking great risk in this process.
We all know that death is imminent, but not sure when its going to occur. Hence, if you have gambled your money in a plan where the insured survived passed the time limit, you may end-up with a negative return on the investment.
Life settlement like any other investment option involves a great amount of risk for the investor as well.
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life settlement investor
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| Posted: Sat Mar 14, 2009 9:59 am Post subject: insurance |
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| THIS sounds like a 'too good to be true', kind of thing. If insurance is sold to someone else OR another Insurance company, because the needs of the policy are no longer needed, what happens if the premiums are NOT paid in a timely manner? I work with the Elderly. It's sad enough to see the stuations that they are CURRENTLY in without something like this ( scams,etc. ) happening to them. |
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sdchargersfan
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| Posted: Sat Mar 14, 2009 12:36 pm Post subject: |
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| Quote: | | THIS sounds like a 'too good to be true', kind of thing. If insurance is sold to someone else OR another Insurance company, because the needs of the policy are no longer needed, what happens if the premiums are NOT paid in a timely manner? I work with the Elderly. It's sad enough to see the stuations that they are CURRENTLY in without something like this ( scams,etc. ) happening to them. |
When someone sells their policy in a life settlement, the investing company becomes the owner and pays all future premiums. You should learn a bit more about the process before commenting about how agents are out scamming people all the time. |
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dgoldenz
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| Posted: Tue Mar 24, 2009 8:26 am Post subject: |
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life insurance settlements
exactly what you want to know i cant understand
when you buy a policy most important is age early you enter you get more coverage at least cost as age is increasing premium also increases and coverage falls down |
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akhilesh
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| Posted: Tue Mar 24, 2009 8:53 am Post subject: |
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akhilesh you are completely out of track this is not related to final settlement or something.
From Derek W. explanation it is really clear that Life settlement is same as Absolute Assignment and it does require signature of both the parties i.e. assignee & assigner. |
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WALLE
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| Posted: Wed Mar 25, 2009 1:46 pm Post subject: |
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Oh Gr8, I never knew that if your are no more interested as owner of life insurance policy, your can transfer the ownership of policy to somebody else and make him as life assured.
That's really gr8, can you give me some referred material or example. numbers, can you give any plan / product example from the company you are working with as agent?
Lori, you wanna throw some lights ? |
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WALLE
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| Posted: Wed Mar 25, 2009 11:39 pm Post subject: insurance |
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| If you CAN do this (sell your policy to someone else), how do you go about it? I mean, I've never heard of someone able to do that. Unless I'm misreading something, in the posts, on this thread, it ALSO states if someone chooses to 'sell' their Life Insurance policy, they would get the 'Full' value of the policy? Please correct me if I'm wrong. |
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sdchargersfan
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| Posted: Thu Mar 26, 2009 4:19 am Post subject: |
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| Quote: | | If you CAN do this (sell your policy to someone else), how do you go about it? I mean, I've never heard of someone able to do that. Unless I'm misreading something, in the posts, on this thread, it ALSO states if someone chooses to 'sell' their Life Insurance policy, they would get the 'Full' value of the policy? Please correct me if I'm wrong. |
You are wrong. Why would anyone give you the full face amount of your policy before you died? If that kind of deal was available, I'd buy $50 million worth of it. If you were to sell your policy (and very few people have the right demographics to do so), you would go through a life settlement brokerage facility, usually assisted by a very experienced agent.
If you do not have a very experienced agent to help you, it could be a VERY complicated process and most people would be left confused and feeling beaten down after all the paperwork, phone calls, and jerking around. Having a good agent helps guide people through the process with significantly less hassle and the agent can usually shop the case to get the highest bid rather than having to do it yourself.....but I forgot, all agents are scam artists, right SD?  |
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dgoldenz
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| Posted: Thu Mar 26, 2009 4:46 am Post subject: |
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Okay, there are agencies who would deal with the settlement issues. Its not always possible for the insured to arrange things needed for the settlement. Also, you need to look for the potential buyer. Therefore, professional helps are required.
Life settlement isn’t an option if you are young and have dependants who could be benefited from the death benefits of your life policy. Seniors with medical conditions are ideal for the life settlement purpose. They can sell their unwanted life policies off and use the money for other purposes.
| Quote: | | it ALSO states if someone chooses to 'sell' their Life Insurance policy, they would get the 'Full' value of the policy? Please correct me if I'm wrong. |
Most likely you wouldn’t get the full value of the policy. But it would certainly fetch higher value than the surrender value. If you can negotiate well, you may receive around 80% of the death value of your insurance policy.
Regards,
Juanita
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Juanita
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| Posted: Thu Mar 26, 2009 5:31 am Post subject: |
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| Quote: |
Most likely you wouldn’t get the full value of the policy. But it would certainly fetch higher value than the surrender value. If you can negotiate well, you may receive around 80% of the death value of your insurance policy.
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From who? You'd have to be on your deathbed to get that kind of settlement. Most life settlements are anywhere from 1-40% of the face value depending on age, premium, cash value, and current health of the insured. I'd be surprised to see a settlement of more than 40% of face value unless someone was in extremely bad health and had the risk classification on the policy at preferred or better. |
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dgoldenz
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| Posted: Thu Mar 26, 2009 7:42 am Post subject: |
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| Quote: | | Most life settlements are anywhere from 1-40% of the face value depending on age, premium, cash value, and current health of the insured. |
Okay, if that's the case then I've a question....why would one prefer life settlement over cash surrender if it won't fetch you higher value than the surrender value? One may get around the same amount as surrender value on a sufficiently old life policy.
~Jeremy |
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JeremyHolter
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| Posted: Thu Mar 26, 2009 9:06 am Post subject: insurance |
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| Quote: | | but I forgot, all agents are scam artists, right SD? |
NOPE..not ALL of them. However, I'm not TOO impressed with some of the Insurance Agents on THIS forum. JUANITA.......thank you,!..you clarified the issue very well!! |
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sdchargersfan
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| Posted: Thu Mar 26, 2009 9:38 am Post subject: |
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hi sdchargersfan
I gave sarcastic remark on akhilesh comment. I am completely agreed with Juanita's point & your opinion too & >> However, I'm not TOO impressed with some of the Insurance Agents on THIS forum <<.
In fact Owner cannot transfer his life insurance to somebody else. Only txn is possible is assignment which is transfer of rights and benefit conditionally or without conditions. And Life settlement is one of those transaction (txn) on policy if available. |
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WALLE
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| Posted: Thu Mar 26, 2009 12:47 pm Post subject: |
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| Quote: | Okay, if that's the case then I've a question....why would one prefer life settlement over cash surrender if it won't fetch you higher value than the surrender value? One may get around the same amount as surrender value on a sufficiently old life policy.
~Jeremy |
This would be for a term policy with no current cash value. It is much tougher to find a valid life settlement on someone with a cash value (i.e. permanent) policy because their insurability is already locked in and the policy is probably guaranteed forever. There would have to be a reason they want to sell the policy instead of keep it, which is tougher to find than someone who just wants to replace their policy and was planning on dropping the old one. A lot of life settlements are done on term policies that are converted to UL and the person selling the life settlement uses the proceeds to buy a new life insurance policy (either term or UL).
| Quote: | | NOPE..not ALL of them. However, I'm not TOO impressed with some of the Insurance Agents on THIS forum. JUANITA.......thank you,!..you clarified the issue very well!! |
Then perhaps you should go get your insurance licenses and educate the board on how things REALLY work, rather than coming into posts where people ask questions about insurance and answering them as if you DO have a license and are qualified to speak about them, even though you aren't. |
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dgoldenz
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| Posted: Fri Mar 27, 2009 6:56 am Post subject: |
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hi dgoldenz,
Aren't you read my response to "sdchargersfan ".
It very easy to say by bold red letter that you are wrong? You may be expert in topics discussed but still I advice you to read complete threads and discussions before giving your noble & polite comments to anyone. |
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WALLE
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