Senior Life Settlement-uses And Applications
|
In a recent article in the National Underwriter (April, 2005) a Senior Life Settlement is depicted as an ingenious financial planning option available to consumers by providing access to secondary life insurance market through life insurance valuation ? a new trend, tool in the financial advisory services industry unlocking opportunity for many.
Sound investment practices require diligence and regular appraisal and valuation of assets. To date insurance policies were excluded from said valuations, due to the perceived absence of market for them. However, the landscape, opportunity and choices open to seniors, retirees etc. faced with a life settlement issue has changed significantly and people are taking notice.
The premise and principles seem to be simple and back to basics. Simply put, it means that life settlements offer qualifying life insurance policy owners the opportunity to sell policies that are no longer no longer adequately serving purpose or unnecessary, receiving significantly more than cash value for them in return. An interesting statistic from the context of senior life settlement (Conning & Company), states that as much as twenty percent of all insured over the age of 65 own policies with a market value exceeding surrender value.
A Senior Life Settlement may make sense for a variety of reasons:
? Premiums may be too expensive
? There been a sudden change in your health condition
? Your life insurance policy about to lapse shortly
? You have significantly more life insurance coverage than you need
? You would like to receive substantially more than the policy surrender value
Qualifying Policies Often Include:
? Joint Survivorship
? Whole Life
? Universal Life
? Variable Life
? Group Life
? Term Life
A Senior Life Settlement offers consumers the empowerment to make better financial planning decisions. A case example is quoted here to throw light on how senior life settlement could benefit a life insurance policy holder: Consider the case of a seventy-four year old female with a $10 million term policy. The annual premiums in excess of $300,000 no longer fit her financial plan so she planned to let the policy lapse. A financial advisor suggested an appraisal, which yielded two options: a $660,000 life settlement of a $3.5 million Settlement With A Paid-Up Policy (SWAPP). Instead of surrendering the policy for no value, the client chose the paid-up policy, eliminating her premium payments while addressing her estate planning needs.
In a recently published (March 4, 2005), Bernstein Research Call, an industry-accepted market forecasting tool and indicator to professionals in the financial advisor sector, it is stated that the Senior Life Settlement business, an emerging secondary market for life insurance, will grow more than ten-fold to $160 billion over the next several years.
http://www.life-settlementco.com/senior-life-settlement.html
Jon Thomas has been involved in finance and insurance, specializing in emerging growth markets since 1979. He continues to write articles concerning the public and their pressing financial concerns.
http://www.life-settlementco.com/senior-life-settlement.html
|
|
|
Types Of Auto Insurance Coverage Explained
A question you might ask yourself is: why must we carry auto insurance? Hopefully one answer you should hear is to protect yourself and your car. For those same reasons the government also requires you to have car insurance.The state of Florida requires you to carry at least the minimum requirements, which is property damage at ten thousand dollars and personal injury protection at ten thousand dollars. Property damage covers another person's vehicle if you are at fault in an accident. Personal injury protection covers 80 percent of medical expenses and 60 percent of loss wages as well as up to a five thousand dollar death benefit for you...(related: Insurance)
State Farm Auto Insurance ? Heres A Few Factors That Determine Your Rate
There are many factors that affect the insurance rate you receive from State Farm Auto Insurance. Various types of coverage are available depending on the price of the vehicle you buy. If you purchase a used vehicle and you don't want or need full coverage, then State Farm Auto insurance will be able to give you a much lower rate than if you have a new expensive vehicle that you are paying out through the bank or finance company.Some of the factors that determine the best auto insurance rate you get from State Farm Auto Insurance include:· Your age. If you are under the age of 25, you will have to pay more for insurance than someone who is older. Most auto insurance companies give a discount for drivers over the age of...(related: Insurance)
Life Insurance Fears Post The London Bombings Tragedy
Following on from the tube train and bus bomb attacks in London there was a move from several UK insurance companies to reassure victims that claims would be processed "quickly and sympathetically". This need for reassurance came in light of concerns that many victims of the blasts would not be covered by their existing health and life insurance cover. This would mean that families of the bombing victims could not only lose a relative, but also suffer financial hardship as life insurance companies refuse to pay out on policies.Standard Life, Axa-PPP and Norwich Union all announced that policy holders would be covered for events on the 7th July. Standard Life said that...(related: Insurance)
Mortgage Life Insurance
Owning a home is a dream for most of us, although it is an expensive one. The monthly payments usually take up a big slice of our monthly income, and the sudden loss in the event of you or your spouse's early death may leave your survivors unable to make payments. To make your family is protected from financial hardship, consider Pick-a-Term Mortgage Protection insurance.Pick-a-Term M...(related: Insurance)
Car Insurance No Claims Bonus Explained
No Claims Bonus is a term used to describe the number of years you have had Car Insurance without making a claim. Put simply, if you have had Car Insurance for 4 years and you have not made a claim in that time, then you have 4 years No Claims Bonus. No Claim Bonus is probably the single biggest factor affecting the cost of your Car Insurance premium. Every year that goes by without you making a claim is another year of No Claims Bonus.Generally speaking, the more No Claims Bonus years you have, the cheaper your premium will be for the car you need to insure. This is because Car Insurance companies can see that your history regarding making any claims is a good one.When changing provider, Car Insurance companies will usually ask ...(related: Insurance)
Facts About Renters Insurance
If you rent an apartment or house, you might consider purchasing renters insurance.Renters insurance provides coverage for damage or loss of personal property for people in rental housing. It's to insure the renter's belongings from theft or damage. In addition, renters insurance also provides liability coverage for people in rental housing if somebody is injured while in the rental ...(related: Insurance)
Why Should You Purchase Your Auto Insurance Online?
If you're interested in slashing your auto insurance bill in half then there's no reason why you shouldn't consider purchasing auto insurance online. Buying your auto insurance online is extremely easy and very convenient. The process is fast and only requires filling out a simple form. The best part is you can receive multiple quotes from several different auto insurance providers from the privacy of your own home. You...(related: Insurance)
Senior Health Care Insurance
Health Insurance For Seniors On The NetWhen a good friend of mine inquired where he could obtain information about medical insurance for his out-of-state, elderly mother, I told him to try the Internet.He reported back to me about a week later, in desperation: "I am giving up, I am too confused." He had taken on an overwhelming project with his widowed mother, living in another state. As the only child, and following the sudden death of his father, it was his responsibility to care for his mother.In this world of technology, the family unit is often living in different geographical areas and the family members are usually quite involved with their own lives, careers, and families. In addition, when both p...(related: Insurance)
High Risk Auto Insurance - How To Lower Rates
How is your driving record lately? Do you have a large amount of speeding tickets or maybe a few car accidents on your driving record? High risk auto insurance generally means one thing for sure, higher car insurance rates. Even though high risk auto insurance rates are typically higher, there are a few things that you can do to reduce your costs now.There are other factors here as well. Insurance companies will continually deem men a greater risk than ...(related: Insurance)
Term Life And Whole Life Insurance
Which type of policy is best for you, term or whole life? The answer depends on several factors, including:Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole lif...(related: Insurance)
Car Insurance No Claims Bonus Explained
No Claims Bonus is a term used to describe the number of years you have had Car Insurance without making a claim. Put simply, if you have had Car Insurance for 4 years and you have not made a claim in that time, then you have 4 years No Claims Bonus. No Claim Bonus is probably the single biggest factor affecting the cost of your Car Insurance premium. Every year that goes by without you making a claim is another year of No Claims Bonus.Generally speaking, the more No Claims Bonus years you have, the cheaper your premium will be for the car you need to insure. This is because Car Insurance companies can see that your history regarding making any claims is a good one.When changing provider, Car Insurance companies will usually ask ...(related: Insurance)
What Is Home Insurance?
Home Insurance is designed to provide you with financial protection against any damage and possible risks that your property and possessions within it may face against unforeseen events and circumstances.Home insurance is commonly taken to describe both buildings insurance, which insures the fabric of your property, and contents insurance, which covers your belongings.Basically it is a contract you make with an insurance company. You have to pay a premium and in return the insurance company will pay for financial losses that are related to your property or your home during the period of the contract.Home insurance, also known as Household insurance or Buildings and Contents insurance, provides protection against loss...(related: Insurance)
site-map - Copyright © 2006 Insurance | All Rights Reserved. | Insurance