Skip to main content

Converting An Unwanted Life Insurance Policy Into Ca$h

Converting An Unwanted Life Insurance Policy Into Ca$h




Do You Own A Life Insurance Policy That You No longer Need or Want? 
It is possible that you may be able to can get a CASH settlement in excess of the 
current cash surrender value by selling your policy in the secondary market to an 
investor.

Reasons To "Sell" A Policy:

Family Situations

Bankruptcy

Estate Reduction

Estate Tax Revision

Business Was Sold

1035 Exchange

Drain On Income

Divorce - Separation

Death of A Spouse

Retirement

Declining Health

Non-Performing Policy

Wealth Planning

Work Related Changes

Qualifying Types Of Life Insurance:

Group

Whole Life

Term (Convertible)

Joint

Universal

Variable

Key Man (business related)

Who Is A Qualified Candidate?

Mature men and women over age sixty-five years of age who have an existing life 
insurance policy and whose circumstances have changed since purchasing the policy 
originally may qualify for a purchase and sale of their policy. Financial advisors view 
this as a powerful and innovative wealth and estate planning tool.

How Much Is A Policy Worth?

There are a number of variables that determine the offered amount for a policy, 
including the following;

* Age (of course) * Premium cost

* Client's Health * Type of Insurance

* Death Benefit * Insurer Rating

* State of Residence *Underwriting criteria

Note: As a general rule the most heavily weighted items are the age of the insured 
(the younger a person is a lesser current value will apply), the health condition, and 
the amount of the premiums that apply are the primary determinants in arriving at 
the price offered for a policy.

What benefits are there for the insured?

First - there is absolutely no cost for a policy appraisal

Offers liquidity to clients

Eliminates the insured having to pay premiums

Funding for 'Alternative' products that fit current needs

Offers an innovative and better solution for current status

Provides another alternative for divesting policies that are no longer needed or 
wanted. 
(As opposed to letting policies lapse or accepting the cash surrender value 
established by the originating life insurance company.)

How Does selling A Policy Work?

1. Policy owner (or professional financial advisor) requests and authorizes a policy 
evaluation.

2. Policy buyer obtains needed documentation, including policy information and 
physician statements, etc.

The highest possible offer is obtained in the secondary market.

The offer is submitted to the insured for acceptance.

If accepted, a contract is sent for signatures.

The change of ownership is completed and funds are released to the previous owner 
(usually the insured).

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.



Article Source: http://EzineArticles.com/24801

Comments

Post a Comment

Popular posts from this blog

Legendary actor Gene Hackman, wife Betsy Arakawa Dead

  Legendary actor Gene Hackman and his wife, Betsy Arakawa, were   found dead   in their New Mexico home Wednesday. He was 95, and she was 63. Santa Fe County police discovered the bodies of the two-time Oscar winner, the classical pianist and one of their three dogs while performing a welfare check. Two other canines survived. Sheriff Adan Mendoza told the Santa Fe New Mexican early Thursday that no foul play was suspected. 10 Gene Hackman and his wife, Betsy Arakawa, were found dead in their Santa Fe, NM, home Wednesday. Ron Galella Collection via Getty Images 10 The couple was found dead alongside one of their dogs. Facebook / Animal Rescue, Inc. ...
Post a Comment
Read more

The Importance of Home Flood Insurance

The Importance of Home Flood Insurance A flood insurance is separate from your usual homeowner's insurance. It is provided by a few insurance companies and comes with its own terms and pricing. This kind of insurance is not mandatory for every homeowner but only to those who live in a designated flood area and has a home mortgage. These places are usually designated by the Federal government as close to main rivers, oceans and dangerous flooding zones. For those who live away from these bodies of water, this insurance is available but only optional. Nevertheless, it is still a good idea to get a policy if your home has a history of flooding from small ponds nearby, excessive rainfall or snow melts. Remember that while floods can cause a huge destruction, the damage it caused is not covered by a homeowner's insurance. A home flood insurance offers the special coverage you would need to protect yo...
Post a Comment
Read more

Insurance to Cover Insurance

Insurance to Cover Insurance Yes it has come to this. Customers who honorably pay their inflated insurance premiums dutifully and on time have to wonder what games their insurance company will play to deny or reduce their claim should the time arise that they ever need to file a claim. This insurance lunacy runs the gambit of all insurance arenas including auto, health, life, and property and has customers so scared of being denied or canceled when they file a legitimate and contractually obligated claim that people who have acute chest pains, for example, refuse to get checked out as they do not want to pay the bill and they are deathly afraid of a negative result getting back to their insurance carrier as either their premiums would increase dramatically or they will be canceled. Enough is enough. It is not fair that a consumer who pays on time and in goo...
Post a Comment
Read more