| Message |
Author |
|
 Posted: Tue Jan 12, 2010 7:46 am Post subject: Life settlement : Are you eligible to do a life settlement? |
|
|
I'm 66 and my finances are now limited. Would it be a good option to go for a life settlement?
_________________
Register Now to have your Insurance queries solved. |
|
Guest
|
|
| Posted: Tue Jan 12, 2010 5:29 pm Post subject: |
|
|
Life settlements are normally for individuals 70 and above. You are a little young. Unless your health is failing considerably, you are probably not a candidate for a life settlement.
_________________
Register Now to have your Insurance queries solved. |
|
Guest 1
Guest
|
|
| Posted: Wed Jan 13, 2010 1:01 am Post subject: |
|
|
| Quote: | | Life settlements are normally for individuals 70 and above. You are a little young. Unless your health is failing considerably, you are probably not a candidate for a life settlement. |
There is no requirement, either legally or through any particular settlement provider, that the viator be age 70 or older. The normal requirement is that the viator/insured be "terminally ill with (commonly) 24 months or less of expected life remaining."
the term "viatical settlement" and "structured life settlement" are the same thing. Life insurance has historically used the term Viatical settlement when a person is considering selling their life insurance policy. The definition of the term "viaticum" from which the term "viatical" comes from is as follows, courtesy of thefreedictionary.com:
| Quote: | vi·at·i·cum (v-t-km, v-)
n. pl. vi·at·i·ca (-k) or vi·at·i·cums
1. Ecclesiastical The Eucharist given to a dying person or one in danger of death.
2. Supplies for a journey. |
InsTeacher  |
|
InsTeacher
Moderator
Joined: 13 Aug 2007
Posts: 1331
Location: Oregon, USA
118.58 Dollars($)
|
|
| Posted: Wed Jan 13, 2010 3:47 am Post subject: |
|
|
First we must ask what type of policy you have? Are you currently talking to someone about a life settlement?
To be clear, there is a difference between a life settlement and a viatical settlement. You do not need to be terminally ill with a life settlement, but usually the expectation is life expectency must be 12 years or less.
It might be a viable option but there are a few things to keep in mind here. What about cash values inside the policy? It is your money after all and if you need it, you should use it.
How much money do you need? A life settlement can provide you with more money than you might have in cash value, but do you need it?
At 66 there are definitely life settlement companies that will consider you. Have you spoken with an advisor about this idea? |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Wed Jan 13, 2010 5:50 am Post subject: |
|
|
| Quote: | | Have you spoken with an advisor about this idea? |
No, actually I was searching for an adviser online and came across your forum.
| Quote: | | A life settlement can provide you with more money than you might have in cash value, but do you need it? |
Would it be some kinda loan against my policy?
| Quote: | | You do not need to be terminally ill with a life settlement, but usually the expectation is life expectency must be 12 years or less. |
How do I know my life expectancy? All I can tell you is that I'm not a terminally ill patient, nor did I ever have any heart disease.
_________________
Register Now to have your Insurance queries solved. |
|
#Guest
Guest
|
|
| Posted: Wed Jan 13, 2010 8:57 am Post subject: |
|
|
You should keep in mind a number of things while you're selling a life settlement.
Here's a thread wherein you'll come across a couple of life settlement issues. |
|
steven
Senior member
Joined: 02 Feb 2006
Posts: 1553
215.65 Dollars($)
|
|
| Posted: Thu Jan 14, 2010 2:41 am Post subject: |
|
|
At 66 you are within range of being a potential life settlement prospect. The life settlement is not a loan, it's a process of selling your policy to a company. They pay you cash, and you give up ownership and beneficiary rights. They then take ownership and name themselves the beneficiary, pay the premiums, and when you die, they receive a payout.
If you have cash value, and all you need is some money to get by, taking a policy loan, or a straight withdrawal might be a better option for you. The money is yours anyway, and you'll be able to keep your life insurance. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Thu Jan 14, 2010 5:33 am Post subject: |
|
|
The life settlement companies are not buying much right now. At age 66 without a major health impairment, your life expectancy is beyond 15 years. Unless you have a policy with a standard or better risk class, a life expectancy of 10 years or less, and a low premium guaranteed to age 100, you probably aren't going to get any offers at this point.
_________________
High Risk Life Insurance Quotes |
|
dgoldenz
Senior member
Joined: 10 Jan 2009
Posts: 392
Location: Virginia
5.24 Dollars($)
|
|
| Posted: Thu Jan 14, 2010 7:51 am Post subject: |
|
|
| Quote: | | If you have cash value, and all you need is some money to get by, taking a policy loan, or a straight withdrawal might be a better option for you. |
Is it gonna prove costlier if I take a loan against my policy?
Could it be a loan with 0% interest and deductions upon maturity only?
_________________
Register Now to have your Insurance queries solved. |
|
anonymous12
Guest
|
|
| Posted: Thu Jan 14, 2010 4:27 pm Post subject: |
|
|
Accuracy! Ins Teacher Nobody said anything about being terminally ill! They stated a life settlement which is typically a senior and life settlements require an individual to be at least 70 or there will be no offers to buy. There is a difference between a viatical settlement and a life settlement! I agree with the viatical part but get your story straight when it comes to life settlements. By the way if any of you have never done a life settlement for your client, you shouldn't comment! Accuracy PLEASE!
_________________
Register Now to have your Insurance queries solved. |
|
Guest 1
Guest
|
|
| Posted: Thu Jan 14, 2010 8:10 pm Post subject: |
|
|
First of all, "Guest 1,' you're really starting to honk off people in this forum with your holier than thou attitude. If you have something to say, then say it with a modicum of normalcy and I don't know...maybe register in the forum? We find that those who don't register commonly like to make their comments and run off to their "I'm always right" world and never come back.
Regarding your comments, of which I take with a major grain of salt, I find the following utterly offensive:
| Quote: | | I agree with the viatical part but get your story straight when it comes to life settlements. By the way if any of you have never done a life settlement for your client, you shouldn't comment! |
Second of all, there are a number of life settlement companies that are offering to buy (at a very discounted level) beginning at age 50, and most are down to at least 65.
My comment about viaticals and life settlements being the same thing is completely accurate. You're talking about nothing more than selling your life insurance policy for a discounted rate. The methodology by which you got there is immaterial: you're still selling a life insurance policy. Granted, there are different qualifiers, but both are still of the same idea.
While I understand that the OP wasn't inquiring about a situation in which he is terminally ill, I did receive a PM asking me about this and would I comment while looking at the thread. So I did.
Perhaps it was my error in not mentioning that my post was due to a PM, and for that error I humbly apologize to our self-annoited life settlement expert, Guest 1.
Here's an idea- instead of being Mr. Jerk in your responses, how about approaching things on a human basis? I've noticed in your other posts that you have a tendency to be a jerk in them as well. Is there anything wrong about being, I don't know, a little more nice and humble?
Just curious.
InsTeacher |
|
InsTeacher
Moderator
Joined: 13 Aug 2007
Posts: 1331
Location: Oregon, USA
118.58 Dollars($)
|
|
| Posted: Thu Jan 14, 2010 10:11 pm Post subject: |
|
|
| Yes, speaking of accuracy the suggestion that one need be at least 70 is completely inaccurate. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Thu Jan 14, 2010 10:28 pm Post subject: |
|
|
To the original poster,
There are a lot of questions I don't know the answers to before I could suggest you take one course of action. It's probably not a conversation you'd necessarily like to have in public, but if you are...
1.) What type of policy?
2.) What kind of cash value do you have?
3.) What's your cost basis?
4.) This life contract has not been turned into a modified endowment conract, correct?
5.) How much money from the cash value do you think you need?
6.) Do you see a situation coming that would have you put the money back in?
7.) Do you still pay premiums?
Taking loans may not have nearly the impact that you think it does. If you answer those questions, I can help you better assess this situation. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Fri Jan 15, 2010 6:03 am Post subject: |
|
|
| Quote: | | To the original poster |
It's a WL policy with face amount= $50,000 with a low cash value. I'd called my agent to have a small discussion regarding things and no, it has not been turned into a modified endowment contract. I do pay premiums (lower than 8%).
_________________
Register Now to have your Insurance queries solved. |
|
#Guest
Guest
|
|
| Posted: Fri Jan 15, 2010 3:19 pm Post subject: |
|
|
Insurance teacher, for the record, there is more than one person who is posting as Guest 1. That post isn't from me. I'm the person who used to post here as Insurance Expert. I stopped posting as a registered user simply because I'm having a problem with my computer and it won't remember my password and I can't log in.
_________________
Register Now to have your Insurance queries solved. |
|
Guest 1
Guest
|
|
