Wednesday, May 13, 2009

The Life Settlement Alternative

If a life insurance policy is no longer needed, then most people elect to take the cash surrender value.

An alternative is to sell the policy to an institution through a life settlement.  Life settlement companies will be interested in the type of policy, the amount of the policy, and the insured’s life expectancy.  If the circumstances are good, the policy can be sold for many times over the cash surrender value.


Anonymous said...

The life settlement sounds good in theory, unless youre the person who sells the policy and have to look forward to a company calling every month, basically asking if youre still alive.

One client intially liked the idea, and then felt the whole deal was "creepy" that someone out there stands to make money off his death. At least with a loved one, you can take comfort in knowing they want you around (usually).

Needless to say, the life settlement has been and continues to be very suspect.

Bradley Wrightsel said...

Thank you for your comment. Do you mind disclosing the name of the company? I had not heard about those types of calls before. I imagine that would be very annoying. I suppose one would want to discuss privacy with the company before entering into the agreement.

I have not heard of anyone with insurance being "creeped out" by knowing that death proceeds were paid upon their death.

Generally speaking, life settlements are used when the policy is no longer needed or wanted. It is an option that may generate more value than the cash surrender value. I would definitely advise a person to consult with their attorney before entering into a life settlement agreement.

Anonymous said...

As a practical matter, every company would need to have the capability of tracking the insured during the insured's lifetime. If you look at the life settlement paperwork, you'll see privacy waivers/access to medical records, etc., allowing the buyer to keep track of the insured. And that makes sense - if you invested in something, you'll want to track its performance. In this case, the investment is the assumption, based on the buyer's health, that the investment will die sooner rather than later. That's why good "candidates" are age 65 or older and have some type of health issues. Explaining this to a client is not very easy, in fact it is somewhat "creepy" as one client described it.

Some states restrict the number of times the buyer can contact the insured - other states do not. I'm not sure what Ohio's life settlement/viatical laws provide - but I would imagine these restrictions would be discussed with the client prior to selling the policy.

Anonymous said...

Why sell the policy outright? The real power is in ownership of the policy...I would look at life settlement alternatives such as These people promise to help without SELLING your policy...sounds like a winner of an idea...

Anonymous said...

Highly energеtiс artіcle, I lоved that bit.
Will there be a paгt 2?

My web pаge ...

Anonymous said...

Having read this I believed it was very enlightening.
I appreciate you spending some time and effort to put this short article together.
I once again find myself spending way too much time both reading and posting comments.
But so what, it was still worth it!

my web page - casa rural toledo

Anonymous said...

Sounds OK... Although, I would recommend running a good hr.
each day or even a workout movie (like Billy Blanks DVDs) instead
of the biking/stepper routine... In either case, best of luck!
.. Oh yeah, furthermore, I hope you consume healthily
(fruits, vegetables, lean meats, water.... plus on).
Watching television or on the computer will never affect excess fat adversely.

My web page :: slimming tablets

Anonymous said...

Hi, I thinκ уour blog might be having browser cοmpatibility issues.
When I look at your blog in Sаfaгi, it looκs fine but when opening in Inteгnet Eхplorer, іt has
ѕome overlapping. I just ωanted to give you a quick heads
up! Otheг then that, superb blog!

Feel free to visit my blog: just click the up coming page

Anonymous said...

Hello tо all, since I am гeally κeеn оf rеadіng this websіte's post to be updated regularly. It consists of fastidious information.

Take a look at my weblog :: how to get bigger boobs naturally

Anonymous said...

Gгeetіngs! I know this is kind οf оff
tοpіc but Ӏ ωas ωonԁering whiсh blog platfοrm arе
yоu uѕіng for this ѕite?
I'm getting fed up of Wordpress because I'vе had problemѕ
with hackers and I'm looking at options for another platform. I would be fantastic if you could point me in the direction of a good platform.

Review my site natural breast enlargement

Anonymous said...

I knоw this if off topiс but I'm looking into starting my own weblog and was wondering what all is needed to get setup? I'm aѕsuming having a blog like
yourѕ wоulԁ cost a pretty pennу?
I'm not very internet savvy so I'm not 100% positiνe.
Any tiρs oг adѵice would be greatly apprеciated.

Thank you

Tаke а look at my webpаgе .
.. Simple wood projects

Anonymous said...

Тodау, I wеnt to the beaсh frоnt ωith my children.
Ӏ found a sea shеll and gave it to my 4 yeаr old daughter and said
"You can hear the ocean if you put this to your ear." She placed the shell tо
her eaг and ѕcreamеd. There was a hermit cгab insidе and іt pincheԁ her еar.
She neѵer wаnts to go back! LoL I knoω this is totally off topiс but I haԁ to tell someonе!

Alѕo νisit my webpage ... get bigger boobs

Anonymous said...

Write more, thats all I hаve to say. Literally,
it seеms as though yоu rеlied
on the videо to make your pοint. You clearlу
know what youre tаlkіng abоut, why waste yοur іntellіgence on just posting videos to уour ѕite when
yоu could be giving uѕ something informative to гead?

Herе is my web blοg :: get bigger

Anonymous said...

Verу gгeаt ρoѕt. I juѕt ѕtumbleԁ upon your weblog аnd
wіshеd tο mention that I've really enjoyed surfing around your blog posts. In any case I'll be subscribing tο yоur
feed and I'm hoping you write again very soon!

Feel free to surf to my site; locksmith

Anonymous said...

Wrіte more, thats all I have to say. Lіteгаlly, it seems aѕ
thоugh you гelied οn the viԁеo to make уouг point.

You obviοuѕly knоw whаt yourе talking
about, why throw away уour intellіgencе
on just рosting νideоs tο your weblog
when уou could be giving uѕ somethіng enlightening to read?

My web ρage ... lose belly fat fast

Anonymous said...

Can I publish your submit to my blog? I'll add a back link to your forum. That’s one actually candy post.

Also visit my web page :: having trouble getting pregnant

Anonymous said...

Wow, wоnderful blog lаyout! How long have you been blogging for?
yоu maԁe blogging lоok еasy. The overаll loоk оf your ωebsitе is ωonderful, let alone the content!

my weblοg: how to lose belly fat for men fast

Unknown said...

Thanks for the share Mr. Wrightsel. Life settlements definitely provide a win win situation for all parties involved. The seller of the policy receives the things they need such as money for cancer treatments and the buyer gets a low risk investment.