Life insurance policy just this minute hyped for seniors 75 - 85 next to 1st 2 yrs premium free.?
Jefferson Life Ins Co ------Physicians News Digest
Answers:
This is one of the "hottest" concepts surrounded by the life insurance business today. It's called Non Recourse Premium Financing.
These transactions come within many variations, but the prime theme is as follows: Typically, an elderly proposed insured is told that he or she will receive a large amount of energy insurance for two years, with no out-of-pocket outlay. Further, the proposed insured is also promised money in their pocket up front, or an opportunity to receive money at the shutting of two years. All of this, seemingly for nothing... essentially for "selling" their ability to buy natural life insurance to another party willing to speculate on their duration or death.
From a consumer standpoint, assuming one can overcome the concern about looking over your shoulder wondering who out here would rather that you not live another day, these deal SEEM to be too good to be true. After all, consumers are promised two years of "free" insurance (which have a considerable value if you're in your 70's as most of these applicants are), plus some secondary money either on the front end, or after the two years is up. And, minus any recourse against the consumers other assets even if the deal falls apart.
So, who loses? In short, the insurance industry, and specifically, the carriers who are getting stuck near these deals. This block of business for the industry is almost guaranteed to lose money in the long run. Why? Because the policies issued as factor of these non-recourse premium-financing deals will not likely ever lapse for this reason there will be more payouts than ever.
As a side note: The New York Department of Insurance not long issued a statement of position on these transactions. In no uncertain terms, the Office of General Counsel of the New York Insurance department determined that lots of these transactions are NOT permissible under New York statute. That's because they violate New York's insurable-interest regulations. Insurable-interest laws are intended to prevent people from making a bet on the lives of strangers and profiting from their deaths. Source(s): http://www.accuquoteblog.com/2006/06/20/…
I would agree with the previous post, that this may be a time insurance policy with graded benefits. Your benefits would not be 100% of the frontage amount, until one or two years had passed.
However, there are other offer and plans available for seniors, including Globe Life that offers No Exam Life Insurance for seniors age 78 and under.
Globe Life offer full coverage from the start of the policy. To learn more, go to http://www.term-life-online.com/globe-li…
Globe Life have been around since 1951, and they are rated A+ Superior by A.M. Best for financial strength. Globe Life have more than 2.5 million policyholders.
Good luck with your life insurance. Source(s): http://www.term-life-online.com/globe-li…
I'm sure there's also a limited benefit during those first two years as well.
There are some guaranteed issue insurance products out near for older folks. They have a predetermined benefit in the first two years to return of premium plus nominal interest.
There is something out there call Investor Owned Life Insurance (IOLI), where an investment company will pay the first two years of premium for you. This is really structured where on earth you take out the policy, take out a loan from them to compensate the premium, and you can then either income back the loan and keep the policy or verbs ownership of the policy to them to forgive the loan.
There are questions as to whether such a policy qualifies as duration insurance because the intent is for the investment company to own the policy and they do not have insurable interest.
Almost all insurance companies are against this, because the investment company have no real insurable interest on you, and instead is trying to exploit the tax deferred temperament of the policy or the lapses that are priced into the policy. Many companies have be adding questions to their policy applications to see if an outside company is paying your premiums, and if so they will deny the application.
If you are really looking for insurance, you'll pretty much hold to buy it on your own. Source(s): work in the industry
Related Questions:
Answers:
This is one of the "hottest" concepts surrounded by the life insurance business today. It's called Non Recourse Premium Financing.
These transactions come within many variations, but the prime theme is as follows: Typically, an elderly proposed insured is told that he or she will receive a large amount of energy insurance for two years, with no out-of-pocket outlay. Further, the proposed insured is also promised money in their pocket up front, or an opportunity to receive money at the shutting of two years. All of this, seemingly for nothing... essentially for "selling" their ability to buy natural life insurance to another party willing to speculate on their duration or death.
From a consumer standpoint, assuming one can overcome the concern about looking over your shoulder wondering who out here would rather that you not live another day, these deal SEEM to be too good to be true. After all, consumers are promised two years of "free" insurance (which have a considerable value if you're in your 70's as most of these applicants are), plus some secondary money either on the front end, or after the two years is up. And, minus any recourse against the consumers other assets even if the deal falls apart.
So, who loses? In short, the insurance industry, and specifically, the carriers who are getting stuck near these deals. This block of business for the industry is almost guaranteed to lose money in the long run. Why? Because the policies issued as factor of these non-recourse premium-financing deals will not likely ever lapse for this reason there will be more payouts than ever.
As a side note: The New York Department of Insurance not long issued a statement of position on these transactions. In no uncertain terms, the Office of General Counsel of the New York Insurance department determined that lots of these transactions are NOT permissible under New York statute. That's because they violate New York's insurable-interest regulations. Insurable-interest laws are intended to prevent people from making a bet on the lives of strangers and profiting from their deaths. Source(s): http://www.accuquoteblog.com/2006/06/20/…
I would agree with the previous post, that this may be a time insurance policy with graded benefits. Your benefits would not be 100% of the frontage amount, until one or two years had passed.
However, there are other offer and plans available for seniors, including Globe Life that offers No Exam Life Insurance for seniors age 78 and under.
Globe Life offer full coverage from the start of the policy. To learn more, go to http://www.term-life-online.com/globe-li…
Globe Life have been around since 1951, and they are rated A+ Superior by A.M. Best for financial strength. Globe Life have more than 2.5 million policyholders.
Good luck with your life insurance. Source(s): http://www.term-life-online.com/globe-li…
I'm sure there's also a limited benefit during those first two years as well.
There are some guaranteed issue insurance products out near for older folks. They have a predetermined benefit in the first two years to return of premium plus nominal interest.
There is something out there call Investor Owned Life Insurance (IOLI), where an investment company will pay the first two years of premium for you. This is really structured where on earth you take out the policy, take out a loan from them to compensate the premium, and you can then either income back the loan and keep the policy or verbs ownership of the policy to them to forgive the loan.
There are questions as to whether such a policy qualifies as duration insurance because the intent is for the investment company to own the policy and they do not have insurable interest.
Almost all insurance companies are against this, because the investment company have no real insurable interest on you, and instead is trying to exploit the tax deferred temperament of the policy or the lapses that are priced into the policy. Many companies have be adding questions to their policy applications to see if an outside company is paying your premiums, and if so they will deny the application.
If you are really looking for insurance, you'll pretty much hold to buy it on your own. Source(s): work in the industry
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