Insurance Agents: is near such entity as free existence insurance?
This is the second year that my father in law get free life insurance for up to $1,000,000.00 Dlls from a company called
"National Western Life Insurance Company"
A Stock Company
It seem real, but we still don't understand why is free.
www.nationalwesternlife.com
Answers:
Without knowing the specifics, I'd say your father-in-law have a 'whole life' policy. Under these policies, a portion of your premium goes into a separate cash or investment description. If you have enough change value in your policy, you can choose not to money your premiums in any given year. The insurer will deduct the cost of insurance directly from the lolly value. It's somewhat similar to setting up the policy to pay for itself. This is not out of the run of the mill.
one entity i'm certain of is that this is NOT a whole vivacity insurance policy. read the small print, but i'd be very surprised if out of the blue, some company decided to cover your dad. this sounds similar to maybe accidental death-only coverage that may be free because it's tied to something your dad bought, or an affiliation he have. easiest thing to do is call the company or look at a statement. Source(s): my own sheer wonder
Nothing's free. The path these commonly occur is that your father takes out a policy (sometimes next to a cash inducement up front), hangs onto it beyond the contestability time of year with an investor group paying the premiums, then he sell the policy (this is another time he could get paid). It's not actually free since the insurance amount counts against his total insurability.
Life insurance companies be really hot on this 1-3 years ago because they made big money writing policies they normally wouldn't get, but very soon there are two primary concerns. The first is an ethical issue with "stranger owned go insurance" or "investor owned life insurance" as its called since a disinterested deputation in your father in law's duration will profit substantially at his death. The other is that since investors own these policies, they will not lapse which throws off the companies' actuarial table (this one's harder to explain).
They could also be pitching a premium financing idea where your father contained by law borrows money against his business to pay premiums and the life span policy indemnifies the loan. There are tons of variations. Some of these will work. Some won't. In this case, he requirements to take out a large loan which sometimes grows over time, and if it is designed for the brass value to indemnify the loan (instead of the death benefit) the brass value may be unpredictable and subject to risk from the insurance company.
If your father in regulation is actually interested in any of these two ideas, there are ways that he can structure this next to more control himself and greater certainty than what he might be pitched by a salesy guy. Source(s): I used to support other agents, so I know the type.
If he's considering premium finance, here's a relateon cloud ninecle about cash values:
http://www.councilfinancial.com/disappea…
SOMEBODY is paying for it. It's not free, I promise. Free to him, maybe, if his employer is paying. Or, he's overpaid for years and years and years, and doesn't have to foot this year because of the equity in the policy. Source(s): agent, 21+ years
It depends upon the type of policy your father has purchased. There are policies that are paid over a 10 year time of year which means that the policy premium is paid for 10 years and after that tenth transfer of funds the premium disappears but the policy remains in force. There is even an option for a single pocket money policy.
That being said, it is not free because you are prepaying the premium so that there is plenty built up cash value surrounded by the policy to continue the coverage without further payments.. Source(s): 35 years experience contained by the insurance industry
nothing is free contact the company it is from for more info
Related Questions:
"National Western Life Insurance Company"
A Stock Company
It seem real, but we still don't understand why is free.
www.nationalwesternlife.com
Answers:
Without knowing the specifics, I'd say your father-in-law have a 'whole life' policy. Under these policies, a portion of your premium goes into a separate cash or investment description. If you have enough change value in your policy, you can choose not to money your premiums in any given year. The insurer will deduct the cost of insurance directly from the lolly value. It's somewhat similar to setting up the policy to pay for itself. This is not out of the run of the mill.
one entity i'm certain of is that this is NOT a whole vivacity insurance policy. read the small print, but i'd be very surprised if out of the blue, some company decided to cover your dad. this sounds similar to maybe accidental death-only coverage that may be free because it's tied to something your dad bought, or an affiliation he have. easiest thing to do is call the company or look at a statement. Source(s): my own sheer wonder
Nothing's free. The path these commonly occur is that your father takes out a policy (sometimes next to a cash inducement up front), hangs onto it beyond the contestability time of year with an investor group paying the premiums, then he sell the policy (this is another time he could get paid). It's not actually free since the insurance amount counts against his total insurability.
Life insurance companies be really hot on this 1-3 years ago because they made big money writing policies they normally wouldn't get, but very soon there are two primary concerns. The first is an ethical issue with "stranger owned go insurance" or "investor owned life insurance" as its called since a disinterested deputation in your father in law's duration will profit substantially at his death. The other is that since investors own these policies, they will not lapse which throws off the companies' actuarial table (this one's harder to explain).
They could also be pitching a premium financing idea where your father contained by law borrows money against his business to pay premiums and the life span policy indemnifies the loan. There are tons of variations. Some of these will work. Some won't. In this case, he requirements to take out a large loan which sometimes grows over time, and if it is designed for the brass value to indemnify the loan (instead of the death benefit) the brass value may be unpredictable and subject to risk from the insurance company.
If your father in regulation is actually interested in any of these two ideas, there are ways that he can structure this next to more control himself and greater certainty than what he might be pitched by a salesy guy. Source(s): I used to support other agents, so I know the type.
If he's considering premium finance, here's a relateon cloud ninecle about cash values:
http://www.councilfinancial.com/disappea…
SOMEBODY is paying for it. It's not free, I promise. Free to him, maybe, if his employer is paying. Or, he's overpaid for years and years and years, and doesn't have to foot this year because of the equity in the policy. Source(s): agent, 21+ years
It depends upon the type of policy your father has purchased. There are policies that are paid over a 10 year time of year which means that the policy premium is paid for 10 years and after that tenth transfer of funds the premium disappears but the policy remains in force. There is even an option for a single pocket money policy.
That being said, it is not free because you are prepaying the premium so that there is plenty built up cash value surrounded by the policy to continue the coverage without further payments.. Source(s): 35 years experience contained by the insurance industry
nothing is free contact the company it is from for more info
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