Life Settlement Overview
A "Life Settlement" is a lump sum settlement paid to the owner of a life insurance policy by one of many funding sources in exchange for the ownership of the policy. Never before have non-terminal policyholders been able to receive capital in excess of their policy's cash or surrender value to increase their wealth. A Life Settlement can usually provide anywhere from 2 to 5 times the cash surrender value of the policy. "With the life settlement option availble, there is no reason to surrender or lapse your life insurance policy." says Grant Shellhammer, of http://www.lifesettlementpro.com/.
Generally, anyone over age 70 who has $100,000 or more in life insurance coverage may qualify for a Life Settlement regardless of health condition. Other factors considered in the negotiations are the policy's cash surrender values and the cost of premiums. A basic principle to remember is that the older the age of the insured and/or the more health complications exist, the higher the settlement. However, each individual's situation is different from case to case.
The fundamentals of the Life Settlement transaction have technically been around since 1989 in the form of "viatical settlements". Individuals at any age can qualify for a viatical settlement if they have a chronic or terminal illness such as cancer or HIV. Viatical Settlements have always been contingent upon the health of the insured, whereas Life Settlements are contingent mainly upon the age of the insured. In most states a terminally ill senior applicant will need to use a licensed viatical broker and/or funder in order to abide by state rules and regulations and to retain the tax-exempt status of the settlement.
According to industry reports, Life Settlement proceeds are tax-free up to the cost basis (premiums paid since policy inception). They are taxed as ordinary income from basis to cash surrender value and proceeds above the cash surrender value are taxed as capital gains.
Once the Life Settlement change of ownership has been recorded with the insurance company and the policyholder has received their money, the Life Settlement funding source will continue to pay premiums throughout the life of the insured. All types of life insurance qualify including group, term, whole-life, universal, survivorship and key-man policies.
Grant Shellhammer is located in sunny Orlando, FL. He is a licensed insurance agent and affliate Life Settlement Broker with Life Settlement Pro. He works with senior citizens and financial professionals nationwide to receive the highest available offers for their life insurance policies.
Should I Buy Rental Car Insurance?
Rental car agencies have a menu of insurance policies they would like to sell you. While each policy could be of some benefit under the right circumstances, you should review each plan (its provisions, limitations, and exclusions) before making a purchase. It is a good idea to request the detailed information from an agent at the rental office, as most companies only provide a summar...(related: Insurance)
Business Insurance; Information You Will Need
When you start a small business you will need to have insurance. You would be wise to shop around. Triple A rated carriers like Farmers Insurance, State Farm and All State are definitely places to get quotes from, but also be sure to check out your local independent insurance agents as well. When shopping for a quote there is some things you will need to know. For instance you SIC code and business category. If you are involved in more than one, it pays to look at both SIC codes to see which category is preferred by the agents underwriters. Some SIC codes many insurance companies will not even touch. For instance Car Washes, Amusement Parks, Aviation Businesses and security companies. But there are insurance companies who specialize in these areas. Perhaps you might wish to thumb through a recent trade journal to see which insurance c...(related: Insurance)
Health Insurance Providers Online - Benefits To Applying Online
Health insurance providers are going online to find new customers. As a result, there are more affordable health insurance options for families, the self-employed, and small b...(related: Insurance)
The Life Insurance Quote Business Is Booming, But Is The Insurance Quote Accurate?
The life insurance quote business online is booming. Not only are life insurance agents quoting a more diverse portfolio of companies, but consumers are also now able to quote life insurance online for themselves. In this article, I will analyze the impact of the life insurance online quote on the insurance industry, the insurance broker, and the consumer looking for insurance.In the not so distant past, life insurance was sold, not bought. The typical agent would travel door to door, network locally, and perhaps meet with potential...(related: Insurance)
Insurance Glossary Of Terms
Assured - Those insured under the terms of an insurance policy.Benefit - The money paid to the policyholder when a claim is made.Bid Price - The selling price or cash-in value of your unit holdings.B...(related: Insurance)
Credit Card Insurance
A word of warning about Credit card repayment protection schemesThe people who sell you the policy and who take out your monthly payment for 'card protection' are not always (in fact, often aren't) the people who you will be dealing with in the event of a claim.So be careful.I took out my credit card protection cover last November (2004). I merrily watched the monthly payments being taken up to date. I recently made a claim. ) I had a heart attack and had to be off work for 8 weeks) I sent off for the claim forms, I sent them back, together with doctor's ...(related: Insurance)
What Answers To Questions For A Home Insurance Price Quote Will I Need To Know?
Lets face it, finding the best home insurance price quote can be an aggravating task if you're not fully prepared with answers to the common questions that most insurance companies will ask. This article outlines the questions that an insurance agent will...(related: Insurance)
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&q...(related: Insurance)
Travel Health Insurance - Understand The Benefits
If you're planning an overseas trip, you need travel health insurance. Every year, nearly 1 million Americans require emergency medical treatment while overseas. Traditional health insurance plans limit the expenses and amounts that they will pay outside the country, and necessary care may be delayed while arrangements for payment are made.Imagine being on vacation in Europe and breaking your leg, only to f...(related: Insurance)
Are You Running The Risk Of An Uninsured Business? Beware & Get Business Insurance
Human life is precarious and so are the activities they indulge in. So it is not just the human life that needs to be protected but the work that he does - his business etc. that needs to be safeguarded. A business is a living not just for its owners but also for the workers and the ones benefited by it. Business insurance thus is too significant to be understood in today's life.What ...(related: Insurance)
Online Health Insurance Quotes - Finding The Cheapest Rates Possible
Shopping for health insurance can be very discouraging when you become aware of the costs. If you are in search of affordable health insurance, an online quote may be very helpful to you. Purchasing insurance online or simply getting an online quote from one or more health insurance carriers can save you a ...(related: Insurance)
Know Your Own Worth: A Practical Insight Into Covering Up
Almost anything can be insured these days: breasts, legs, your goldfish, your mental health, physical health, your own life, your child's life. You can insure against the bad weather, good weather, political events?.This week in Scotland, triathlon competitors were insured for £1 million in case they were injured by the Loch Ness monster according to the BBC?.life insurance perhaps? It would seem that recent rumours of Nessie seeking a more exotic meal of wild venison and exploring the loch shores have finally reached the corporate world. ( http://www.lochnesstooth.com/ )But is Nessie the real monster in this, what other terrible creatures lie hidden in the complexity o...(related: Insurance)
Home Insurance: Premium Protection In Case Mishap Takes A Rain Check
My whinstone house my castle is, I have my own four walls.This is truth for every home owner. Your home, your castle, your prized possession, your territory - which is certainly more than four walls. You would do anything to protect it against damage and injury. Damage and injury? Is that too dark a statement? Perhaps. But it is also very probable. Mis-happenings and accidents are things that don't have an allotted time slot. Nobody can calculate their coming and neither be prepared for it. You cannot be equipped to tackle them head on but you can certainly equip your self for the repercussions. Home insurance are practically formulated for the said purpose, something that is unlikely you have not heard about. It is also unlikely that you have...(related: Insurance)