|
|
|
|
|
|
|
|
|
|
|
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.
Contact details:
grant@lifesettlementpro.com
1.888.973.8377
http://www.lifesettlementpro.com
If you've been out of school for a couple of... Read More
Let's be realistic, everyone needs to have auto insurance. Aside... Read More
Insurance policies provide financial protection in a broad range of... Read More
The Terrorism Insurance Act of Nov. 26, 2002. This helps... Read More
When you start a small business you will need to... Read More
This is a FREE Insurance Claim GuideYour "Motor Vehicle" can... Read More
Not a year goes by that insurance rates go up.... Read More
The issue at hand is the use of a consumer's... Read More
Auto insurance is an agreement between you and your insurance... Read More
Listed below is a useful guide to life insurance terms.... Read More
OK, you take that stroll down to the mailbox excitedly... Read More
If you do not understand the way that auto insurance... Read More
Car insurance rates are prohibitive nowadays. Many families really struggle... Read More
Life insurance can be a very scary thing. If you... Read More
Many families will find themselves without medical coverage at some... Read More
In response to a hard insurance market in the mid... Read More
The average auto insurance policy price is derived from a... Read More
Health insurance plans vary in their coverage and prices. The... Read More
Are you looking to buy a life insurance policy? Well,... Read More
With a life insurance settlement, seniors now have the ability... Read More
Life insurance, whether you need term or whole life, can... Read More
The Health Savings Account (HSA) is a great tool that... Read More
Having even a teeny-tiny car accident can be one of... Read More
Most people want lower insurance costs but are often too... Read More
Shopping for life insurance quotes for adult children isn't any... Read More
The Health Savings Account (HSA) is a great tool that... Read More
There are many choices for insurance. Insurance is a policy... Read More
I've long wanted to write an article about Internet Leads... Read More
Drivers are applying for auto insurance online not just for... Read More
A word of warning about Credit card repayment protection schemesThe... Read More
Most people don't realize that there are 7 different homeowners... Read More
Forcible and violent entry (f&ve) is the terminology used within... Read More
Whether you are looking for car insurance in Canada, the... Read More
Finding good car insurance can be very difficult. Here are... Read More
A "Life Settlement" is a lump sum settlement paid to... Read More
Many economists have suggested and recent economic data indicates that... Read More
A Health Savings Account (HSA) is not a type of... Read More
There are times when you'll find yourself temporarily without health... Read More
The online discussion forum has emerged as the medium of... Read More
What are the factors involved in flat insurance? Do I... Read More
Finding insurance quotes for California auto is now pretty easy.... Read More
If you're self-employed and facing high health insurance bills, there... Read More
Since there are many factors that go into determining your... Read More
One of the most important things you will ever do... Read More
Because of the many problems that can occur when you... Read More
Shopping for health insurance can be very discouraging when you... Read More
I have written many articles about the hard surety bond... Read More
As a young, healthy college student, it might be tempting... Read More
When I suddenly had to become a fulltime caregiver to... Read More
Getting your business up and running is exciting, challenging and... Read More
Insurance |