Looking to Buy Your FE Plans - Prevent Chargebacks to Agent
- Thread starter rousemark
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- #52
Don't know.. Not a lot. Probably couple dozen.
Perm life insurance is a guaranteed claim as long as the premium is paid.
Why wouldn't a carrier prefer to see a perm policy lapse before the claim is paid?
If you have ever been involved in the life settlement business you would know that carriers would much rather those policies lapse than have someone pay the premium until the claim is paid.
Your challenge would indicate you don't understand the settlement business and how much carriers drag their feet when it seems the insured wants to sell their policy to an investor.
Selling the policy to an investor transforms a maybe claim into a certainty.
Bingo Somarco. People don't understand that . Run the #'s on a 50 yr old $500 k gul . He'll probably live till age 80-85 avg. He'll have a max of $135k premium in it and the payout will be 3-4 times what he put in it. Safe investments pay 2-3% max a yr . The math doesn't work for the insurance co's . If everyone keep their policys till death the premiums would be twice as expensive . As you said insurance co's want you to lapse the policy in yrs 5-10 to get the certain claim off their books. When a life settlement company buys it its a certain claim as you said . Thats why i said the insurance company might terminate you if they saw a pattern of you referring people out . Your causing a certain claim for them .
- 4,872
Its all relevant . . The $ exposure is not as great for Fe settlement policy but again if all clients keep their fe policys till death the co's would lose big money. Also remember Compensation over a 10 yr period much higher on Fe policys so add that in with a certain claim and its a big lose if all fe policy's were held till death.
- 4,872
Not really. The price buster carriers would lose the $$$ but LH would be making $$$ if policy was active till death.
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